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:

Indirect Method

A method used in cash flow statements where net income is adjusted for items that affected reported net income but did not result in an actual cash flow.

Direct Method

A cash flow statement presentation that lists actual cash inflows and outflows from operating activities.

FASB

The Financial Accounting Standards Board (FASB) is an organization responsible for establishing and improving financial accounting standards in the United States.

Net Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.