Which Two of the Following Are Generally Used to Fund

question 25

Multiple Choice

Which two of the following are generally used to fund the external financing need?
I. sale of fixed assets
II. increase in accounts payable
III. issuance of long-term debt
IV. sale of equity securities

• A)I and II
• B)I and III
• C)II and III
• D)II and IV
• E)III and IV

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Definitions:

Responsibility Accounting System

An accounting system that collects, summarizes, and reports financial information related to the responsibilities of individual managers.

Rent Expense

The cost incurred from leasing a property or equipment for business operations, recognized on the income statement.

Square Feet

A measurement of area commonly used in the United States to quantify the size of a space, such as real estate or floor plans.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit, distinct from cost centers.