Match the words with the term.
-Which of the following statements describes a source of funds?
A) Operating at a loss is a source of funds.
B) Trade credit is a source of funds.
C) Dividends paid are a source of funds.
D) Investments in all types of assets are sources of funds.

Question

Quizplus · Accepted Answer

Trade credit is a source of funds because it allows a business to purchase goods or services on account, paying the supplier at a later date, thus providing the business with operational liquidity without immediate cash outlay.

Match the Words with the Term