Answer to Question #200951 in Accounting for Marinela

Question

Briefly fill in the following, relating to how money is applied and sourced in a business:

Sources of Funding

 A: 

C: 

E:

Sources of Funding

I:  

D: 

 L: 

 

Hint:       A  +  E  +  D    =   C   +   I   +  L

I don't quiet understand this question.

Answer 1

Solution:

The Sources of Funding are as follows:

A: Asset’s financing

C = Capital financing

E = Equity financing

 

I = Investment financing.

D = Debt financing such as long-term debt.

L = Liabilities such as short-term loans