Which of the Following Is Not an Example of Internal

question 32

Multiple Choice

Which of the following is not an example of internal financing

• A) Profits
• B) Accounts receivable
• C) Credit from suppliers
• D) Equity financing

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Definitions:

Operating Lease

An agreement that permits the utilization of an asset without owning it, usually with a shorter duration than a finance lease.

Fair Value

What one would earn from selling an asset or what it would cost to shift a liability in a systematic operation with market actors on the appraisal date.

Guaranteed Residual Value

The predetermined value of a leased asset at the end of the lease term, guaranteed by the lessee or a third party.

Present Value Interest Factors

A factor that is used to determine the present value of a future sum or series of future payments, discounted at a specific interest rate.