The Three Primary Sources of Corporate Funds Are

question 161

Multiple Choice

The three primary sources of corporate funds are

• A) banks, friends, and family.
• B) government, other corporations, and the central bank.
• C) investment banks, brokerages, and insurance companies.
• D) stocks, bonds, and reinvestment of profits.

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Definitions:

Extended Credit

An arrangement allowing customers to purchase goods or services on account and pay for them at a later date, beyond the standard billing period.

Uncollectible Notes

Loans or promissory notes that have been deemed uncollectible by the creditor due to the borrower's inability to pay.

Bad Debts Expense

Bad debts expense represents the estimated amount of accounts receivable that a company does not expect to collect due to customers' inability to fulfill payment obligations.

Notes Receivable

Financial assets representing the right to receive payments from a debtor for a specified amount by a certain date.