JAMB - Commerce (2001 - No. 12)
(i) Personal Savings
(ii)Retained Earnings
(iii)Accrued taxes
Which of the items above constitute internal sources of financing for companies?
(ii)Retained Earnings
(iii)Accrued taxes
Which of the items above constitute internal sources of financing for companies?
i and ii
i and iii
ii and iii
i, ii and iii
Paskaidrojums
Internal sources of financing for companies include funds that are generated within the organization itself. These are:
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Personal Savings: This refers to the personal funds of the business owner or partners used to finance the company.
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Retained Earnings: This is the portion of the company's profits that are not distributed as dividends but are retained and reinvested in the business.