Discretionary Sources of Financing Are Those Sources That Vary Automatically

question 73

True/False

Discretionary sources of financing are those sources that vary automatically with a firm's level of sales.

---

Definitions:

Tax Return

A form filed with a government body declaring liability for taxation, containing details of income earned and taxes owed.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, often including a profit and loss statement, balance sheet, and cash flow statement.

Accrual Basis

An accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged.

Accounting

The practice of recording, classifying, and reporting on financial transactions to track an entity's financial status and performance.