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:

Explicit

Clearly expressed or fully stated in the actual text or speech.

Maintenance Rehearsal

Practice of saying some information to be remembered over and over in one’s head in order to maintain it in short-term memory.

Repeating Items

The act of presenting the same items or information multiple times to reinforce memory or learning.

Eyewitness Testimony

Evidence provided by individuals who were present during an event, often used in court, which can be highly influential but sometimes unreliable due to memory inaccuracies.