What is not a source of long term finance?
No, commercial papers are not generally a source of long-term financing, as they have a maturity period of 270 days (short-term debt instrument). However, sometimes, commercial papers might be issued for a period of 1 – 2 years (intermediate-term financing).
What is not source of long term finance?
Commercial papers are not typically considered a source of long-term financing, as they are short-term debt instruments that mature within 270 days.
Which of the following are not included in long term finance?
Explanation: Except dividend all options are long term finance.
Which of the following is not a source of finance?
Detailed Solution. Fixed assets are not a source of finance for a company. Key Points Fixed assets: Fixed assets are long-term tangible assets that businesses employ to make money.
Which of these is not a source of long term working capital?
The correct answer is Unsecured term loans. Key PointsThe Unsecured term loans is not a source of working capital. What is working capital? It is the excess of current assets over current liabilities.
What are the sources of long term finance?
Capital market, special financial institution, banks, non-banking financial companies, retained earnings and foreign investment and external borrowings are the main sources of long- term finances for companies.
What is a long term source of finance?
Long-term finance can be defined as any financial instrument with maturity exceeding one year (such as bank loans, bonds, leasing and other forms of debt finance), and public and private equity instruments.
Which of the following is not a financial term?
El Nino effect refers to the climate cycle in the Pacific Ocean. It is the warm phase which occurs due to southern oscillation. to It is a natural phenomenon. Thus, it is not a financial term.
Which of the following is not long term liability?
Credit does not come under the category of long-term liability.
Which of the following is not a source of equity financing?
Answer and Explanation:
The correct answer is e) Government grants.
Which of the following is not a part of the financial system?
The trade market is NOT included in the financial sector. Financial Market: Financial markets act as an intermediary between lenders and borrowers. Financial markets help in smoothening out the capitalist economy.
Which of the following is not a source of financing for small business?
Answer and Explanation: The correct answer is D. Credit cards. It is not uncommon for small business owners to use credit cards to fund their business expenses, however, credit cards are not considered a traditional source of funding for a new small business.
Which is not a source of capital?
Correct answer: Option A) Assets. Explanation: Assets are not a primary source of capital for the firm. A firm needs capital to invest in assets so that they can be used to generate revenues and profits.
What are the sources of finance long-term and short-term?
Long terms finance options include equity financing, debentures, term loans, venture capital, and preferred stock. Short-term options contain bank overdrafts and short-term loans.
What are the different long-term and short-term sources of finance?
- Short-term financing sources include trade credit, bank overdrafts, short-term loans, and accounts receivable financing (factoring). - Long-term financing sources encompass bank loans, bonds, equity financing (issuing shares), and other forms of long-term debt.
What are the two sources of long-term capital?
- (a) Equity shares: These represent the ownership capital of a company. ...
- (b) Retained earnings: These are the undistributed profits of a business that are retained in the business for future use.
What is a source of finance?
A source or sources of finance, refer to where a business gets money from to fund their business activities. A business can gain finance from either internal or external sources.
What is a short term source of finance?
The main sources of short-term financing are (1) trade credit, (2) commercial bank loans, (3) commercial paper, a specific type of promissory note, and (4) secured loans.
What is an example of a long term loan?
Long Term Loans
This loan comes with significantly higher repayment tenures, and you can repay it over an extended period of time, usually ranging from 3 years to 30 years. Examples of long-term loans include Home Loans, Car Loans, Two-Wheeler Loans, Personal Loans, Small Business Loans, to name a few.
What are the long-term financial requirements?
The long-term financial requirements or fixed capital is the fund that a firm would use to invest in the long-term assets, supporting the long-term development in the business. The long-term financial requirement could be the shareholder's equity or long-term borrowings.
Why do we need long-term sources of finance?
Long-term financing helps position companies for long-term initiatives and to better manage financial risk. The benefits of long-term and short-term financing can be best determined by how they align with different needs.
What is a long-term loan?
A long-term loan is a type of credit paid over a considerable period, usually more than 3 years. This loan tenure can be somewhere between 3-30 years. Home loans, car loans, and personal loans are the perfect examples of long-term loans.
What is not on a financial statement?
Off-balance sheet (OBS) assets are assets that don't appear on the balance sheet. OBS assets can be used to shelter financial statements from asset ownership and related debt. Common OBS assets include accounts receivable, leaseback agreements, and operating leases.
Is not a type of financial statement?
Trial balance is not part of financial statements.
What is not an example of financial statement?
Answer and Explanation: The correct answer is e. Revenue statement. A revenue statement is not a basic financial statement.
