The four basic sources of long-term funds for the business 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 the four basic sources of long-term funds for a business firm. Current liabilities are short-term funds and do not constitute long-term funding. Paid-in capital in excess of par is not a separate source of funding, it is a component of common stock.

The Four Basic Sources of Long-Term Funds for the Business