Small Businesses Can Seek Private Financing in All of the Following

question 12

Multiple Choice

Small businesses can seek private financing in all of the following ways EXCEPT ________.

• A) selling stocks and bonds
• B) seeking angel investors
• C) tapping personal savings
• D) attracting venture capitalists
• E) using credit cards and lines of credit

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Definitions:

Disbursement Basis

An accounting method in which expenditures and revenues are recorded when cash is actually disbursed or received, rather than when they are incurred.

Accrual Basis

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transaction happens.

GAAP Constraint

Guidelines that restrict or limit certain accounting practices under Generally Accepted Accounting Principles, to ensure fairness, consistency, and accuracy in financial reporting.

Disbursement Basis

Accounting method where expenses are recorded when cash is paid out, rather than when incurred.