C. Equity funding
In equity funding, business owners sell a portion of their ownership in the company to investors in exchange for capital. This means that the investors now have a stake in the business.
A.
Debt funding
B.
Reserve funding
C.
Equity funding
D.
Angel funding
7 answers
C. Equity funding
In equity funding, business owners sell a portion of their ownership in the company to investors in exchange for capital. This means that the investors now have a stake in the business.
C. Liabilities + equity
The accounting equation states that Assets = Liabilities + Equity. This equation represents the relationship between a company's resources (assets) and the claims against those resources (liabilities and equity).
D. Cash flow statement
The cash flow statement provides information about a company's inflows and outflows of cash during a specific period, which is crucial for assessing the company's ability to pay its bills and meet its financial obligations.
D. Revenue
Under accrual basis accounting, revenue is recognized when it is earned, regardless of when the cash is actually received. This means that you need to pay special attention to when revenue is recorded, as it can impact financial statements and performance measurement even if the cash hasn't yet been received.