External Funding Needed (EFN) Is

question 37

Multiple Choice

External funding needed (EFN) is

• A) the additional debt or equity a firm needs to issue so that it can purchase additional assets to support an increase in sales.
• B) the additional funds raised by a firm to pay off existing short-term debt.
• C) the additional funds raised by a firm to pay off existing long-term debt.
• D) None of these

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a proportion of its profits.

Gain Recognition

The process of recording increases in asset value, typically when assets are sold for more than their book value.

Consolidated Income Statement

A financial statement that combines the income, expenses, and profits of a parent company and its subsidiaries to present the overall performance.

Subsidiary Sold Land

An event where a company owned by another company sells a piece of real estate.