Which of the Following Is a Form of Internal Financing

question 31

Multiple Choice

Which of the following is a form of internal financing for small firms?

• A) Bank loans
• B) Equity financing
• C) Retain earning and owner's personal savings
• D) Government grants

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Definitions:

Current Ratio

The Current Ratio is a liquidity metric that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Notes Payable

Financial obligations represented by formal written agreements to pay a specific sum of money at a future date.

Pro Forma Statement

Financial statements prepared under hypothetical scenarios or assumptions to forecast future financial performance.

Fixed Assets

are long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, not expected to be converted into cash within a year.