Equity Financing Comes from Either of Two Sources: (1)loans from Banks

question 61

True/False

Equity financing comes from either of two sources: (1)loans from banks and other financial intermediaries, or (2)the sale of corporate bonds to individuals or institutions.

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Definitions:

Debits

Entries on the left side of an account ledger, indicating an increase in assets or decrease in liabilities and equity.

Credits

Entries in accounting that increase liabilities, revenue, or equity accounts, or decrease asset or expense accounts, reflecting a gain in financial statements.

Chart of Accounts

An organized list of all accounts in a business entity's financial records, each with a unique identifier.

Journal Entry

A record in accounting that represents a transaction in the general ledger, where each transaction is recorded with both a debit and a credit.