Which two of the following are generally used to fund the external financing need?
I. sale of fixed assets
II. increase in accounts payable
III. issuance of long-term debt
IV. sale of equity securities
A)I and II
B)I and III
C)II and III
D)II and IV
E)III and IV

Question

Quizplus · Accepted Answer

II and IV. Increases in accounts payable and the sale of equity securities are common methods to fund external financing needs. Accounts payable increase represents a form of short-term financing, while selling equity securities provides longer-term funding without increasing debt.

Which Two of the Following Are Generally Used to Fund