(i) Personal Savings
(ii)Retained Earnings
(iii)Accrued taxes
Which of the items above constitute internal sources of financing for companies?
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i and ii
- i and iii
- ii and iii
- i, ii and iii
The correct answer is: A
Explanation
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.