Which One of These Accounts Is a Source of Internal

question 12

Multiple Choice

Which one of these accounts is a source of internal funding?

• A) Retained earnings
• B) Common stock
• C) Bonds payable
• D)Preferred stock

---

Definitions:

Quality Improvement

The process of making changes to operations to increase the efficiency and effectiveness of products, services, and processes.

External Failure Cost

Costs incurred when a product fails to meet quality standards after it is delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document that outlines the expenses associated with preventing, detecting, and correcting defective work or products.

Prevention Cost

Expenses incurred to avoid defects in products or services.