GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Provision for Taxation
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Outstanding Payment
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Depreciation funds
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All of the above
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Detailed explanation-1: -Retained Earnings (profit) and Borrowed Funds.
Detailed explanation-2: -Internal sources of finance refer to money that comes from within a business. There are several internal methods a business can use, including owners capital, retained profit and selling assets . Owners capital refers to money invested by the owner of a business. This often comes from their personal savings.
Detailed explanation-3: -Internal sources of capital are those that are generated from within the business mainly through reinvestment of profits it is also referred as owner’s investment. Retained profit, sale of fixed assets, debt collection are some of the internal sources of finance or capital.
Detailed explanation-4: -The classic examples of an internal source of finance include retained profits, sale of operating assets, issue of capital, and leading collection of debt. The business owners do not face financial risk and have to deal with financial risk only.
Detailed explanation-5: -Owner’s investment (start up or additional capital) Retained profits. Sale of stock. Sale of fixed assets. Debt collection.