GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is an example of sources of funds?
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Increase in fixed assets
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Decrease in share capital
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Increase in long-term liabilities
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Decrease in long-term liabilities
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Explanation:
Detailed explanation-1: -The main sources of funding are retained earnings, debt capital, and equity capital. Companies use retained earnings from business operations to expand or distribute dividends to their shareholders.
Detailed explanation-2: -Sources of funds include cash farm receipts, capital asset sales, increases in liabilities, outside equity capital infused into the business, and net non-farm cash income. The increase in total liabilities is derived from the beginning and ending balance sheets.
Detailed explanation-3: -Commercial papers is not a source of long-term finance.
There is 1 question to complete.