Which Two of the Following Are Generally Used to Fund

question 25

Multiple Choice

Which two of the following are generally used to fund the external financing need?
I. sale of fixed assets
II. increase in accounts payable
III. issuance of long-term debt
IV. sale of equity securities

• A)I and II
• B)I and III
• C)II and III
• D)II and IV
• E)III and IV

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Definitions:

Externally Supplied

Refers to goods, services, or resources that are provided by external entities or suppliers outside of the organization.

Sales Forecast

An estimation of the sales revenue a company expects to achieve in a future period under a given set of conditions.

Financial Planning

Financial planning involves evaluating one's current financial status and making strategies to achieve future goals and financial stability.