One Important Source of Financing for Most Small Businesses Is

question 313

True/False

One important source of financing for most small businesses is the owner's savings. If the owner contributes money to the business from his/her personal savings, it will be recorded in the owners' equity account on the balance sheet.

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services, such as currency exchange and wealth management.

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable balance in a year.

Cash Cycle

The duration of time it takes for a company to convert its investments in inventory back into cash through sales.

Cash Cycle

The period between the outlay of cash for goods/services and the return of cash through customer payments, reflecting the liquidity and efficiency of a company.