The four basic sources of long-term funds for a firm are ________.
A) current liabilities, long-term debt, common stock, and preferred stock
B) current liabilities, long-term debt, common stock, and retained earnings
C) long-term debt, paid-in capital in excess of par, common stock, and retained earnings
D) long-term debt, common stock, preferred stock, and retained earnings

Question

Quizplus · Accepted Answer

Long-term debt, common stock, preferred stock, and retained earnings are considered the four basic sources of long-term funds for a firm. Current liabilities are short-term sources of funds, while paid-in capital in excess of par is a component of common stock.

The Four Basic Sources of Long-Term Funds for a Firm