Which of the Following Is the Type of Financing That

question 122

Multiple Choice

Which of the following is the type of financing that includes capital funds borrowed from personal savings, friends and relatives, financial institutions such as commercial banks, or venture capitalists?

• A) Debt financing
• B) Equity financing
• C) Public financing
• D) Capital financing

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Definitions:

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made on a periodic basis, as opposed to continuously.

Cost Of Goods Sold

The direct financial outlays for labor and materials that are necessary for producing goods a company sells.

Accounting Period

A specific time span for which financial records are kept and financial statements are prepared, usually a year or quarter.

Beginning Inventory

The value of all the goods held by a company at the start of an accounting period, before any purchases or sales are made.