Businesses Acquire Long-Term Financing from Two Major Sources

question 215

Multiple Choice

Businesses acquire long-term financing from two major sources,

• A) debt financing and government funds.
• B) equity financing and trade credit.
• C) retained earnings and commercial paper.
• D) debt financing and equity financing.

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Definitions:

Cash Account

An account that records all cash transactions, including receipts and payments, reflecting the company's liquidity status.

Permanent Accounts

Balance sheet accounts whose balances are carried over into the next accounting period.

Balance Sheet

A financial statement that shows an entity's assets, liabilities, and shareholders' equity as of a specific date, providing a snapshot of its financial condition.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheets, income statements, and cash flow statements.