MODULE 03: SOURCE OF FINANCING Flashcards
What are the three terms on the basis of period?
The long term, equity, Medium Term, and Short term
What are the accounts that is under the Long Term Equity?
Equity shares, retained earnings, preference shares, Debentures, and Loan from financial institutions
What are the accounts that is under the Medium Term?
Loan from banks, Public deposits, and Loan from financial institutions
What are the accounts that is under the Short Term?
Trade credit, Factoring, Banking, and Commercial paper
What are the two funds under the basis of ownership?
Owner fund and Borrowed funds
What are the accounts is under the Owners Fund?
Equity sharing and Retained earnings
What are the accounts that is under the borrowed Funds?
Debentures, Loans from banks. Loan from financial institutions, public deposits, and lease financing.
What are the two sources of Generation?
Internal Sources and External Sources
What is the account under the Internal Sources?
Equity share capital and Retained Earnings
What are the accounts that is under the External Sources?
Financial Institutions, Loan from banks, preference shares, public deposits, debenture, Lease financing, Commercial papers, Trade Credits, and Factoring
What is the three Period basis sources ?
Long-term Sources, Medium-term sources, and Short-term funds
Fulfilling the financial requirements of a business for a period more than 5 years.
Long-Term sources
This is a source of funds where in it is required for a period of more than one year but less than five years.
Medium-Term Sources
It is a fund which are required for a period not exceeding one year
Short-Term Sources
Where does the Equity Shares fall?
It is under the Long-Term Sources of Finance
