All Are Ways in Which a Firm's Internal Sources of Finance

question 7

Multiple Choice

All are ways in which a firm's internal sources of finance can be increased except:

• A) delay payments to accounts payable.
• B) increase inventory levels.
• C) retain more profits.
• D) cut the dividend rate.

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Definitions:

Sales

Transactions or activities related to the selling of goods or services, generating revenue for a business.

Bad Debts

Money owed to a company that is unlikely to be paid by the debtor, considered as a loss to the company.

Uncollectible Accounts

Accounts receivable that have been deemed uncollectable from debtors, similar to bad debts but often considered as a specific stage in the collections process.

Pending Job

A task or project that has been initiated but is not yet completed or ready for execution.