Practicing Success
Identify the source is used to finance current assets in addition to current liabilities. |
Share Capital Short term Sources Long term Sources Bank Overdraft |
Long term Sources |
The correct answer is option (3) : Long term Sources Long term Sources Long-term sources of financing are typically used to finance current assets in addition to current liabilities. Long-term financing options, such as loans, bonds, and equity, provide the necessary funds to cover both short-term and long-term financial needs, including current assets like inventory, accounts receivable, and fixed assets, in addition to current liabilities like accounts payable and short-term loans. |