The Term "Additional Funds Needed (AFN)" Is Generally Defined as Follows

question 14

Multiple Choice

The term "additional funds needed (AFN) " is generally defined as follows:

• A) Funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.
• B) The amount of assets required per dollar of sales.
• C) The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
• D) A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.
• E) Funds that are obtained automatically from routine business transactions.

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Definitions:

Synaptic Vesicle

A small organelle within a neuron that stores neurotransmitters for release at the synaptic cleft.

Latin Word

A word from Latin, an ancient language that has influenced many modern languages, including English, Spanish, and French.

Neuron

A nerve cell that transmits information through electrical and chemical signals, playing a critical role in the functioning of the nervous system.

Excitatory Neurotransmitters

Chemical substances that promote the firing of neurons, facilitating communication within the brain and nervous system.