Potential Sources of Financing to Support an Increase in Sales

question 139

Multiple Choice

Potential sources of financing to support an increase in sales include all of the following EXCEPT

• A) increase in the dividend payout ratio.
• B) increase in spontaneous liabilities.
• C) increase in accounts payable.
• D) issuance of bonds and/or common stock.

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Definitions:

Required Condition

A prerequisite or necessary condition that must be met for a certain procedure, test, or action to be appropriate or valid.

Sample Variance

A measure of the dispersion of a sample dataset from its mean, calculated as the sum of squared deviations from the sample mean divided by the number of observations minus one.

Population Variance

A statistical measure of the distribution of values in a population, indicating how much individuals within the population differ from the population mean.

Upper Limit

The maximum value in a set or the highest value that a variable can take.