The Term "Additional Funds Needed (AFN)" Is Generally Defined as Follows

question 26

Multiple Choice

The term "additional funds needed (AFN) " is generally defined as follows:

• A) Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.
• B) The amount of assets required per dollar of sales.
• C) The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
• D) A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.
• E) Funds that are obtained automatically from routine business transactions.

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Definitions:

Absolute Privilege

A special right, immunity, permission, or benefit given to certain individuals that allows them to make any statements about someone without being held liable for defamation for any false statement made, regardless of intent or knowledge of the falsity of the claim.

Defamation

The act of making false statements that harm someone's reputation.

Falsity

Refers to the condition of being false or untrue.

Trespass to Realty

An unlawful intrusion or invasion of someone's property without consent or legal right.