Which of the Following Statement About the External Sources of Capital

question 14

Multiple Choice

Which of the following statement about the external sources of capital is not true?

• A)A country's accounting system tends to reflect the relative importance of individual investors,banks,and government as providers of capital.
• B)The three main external sources of capital for businesses are individual investors,banks,and government.
• C)In most advanced countries,only one of the main sources of external capital is important.
• D)The importance of each source of capital varies from country to country.

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Definitions:

Dollar-Value LIFO

Dollar-Value LIFO method is an inventory costing method that uses the LIFO principle coupled with grouping inventory into pools based on dollar value instead of physical units.

Base Year Cost

The initial cost of an asset or investment, used as a reference point to measure the cost growth or performance over time.

Price Index

A statistical measure that shows changes in the price level of a basket of consumer goods and services over time, used to gauge inflation or deflation.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) principle, but accounts for changes in inventory value due to inflation by measuring inventory in dollar amounts rather than units.