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JAMB Commerce 2001 Question 11

Question 11

Business Finance

I. Personal Savings
II. Retained Earnings
III. Accrued Taxes
Which of the items above constitute internal sources of financing for companies?

  1. A.I and II
  2. B.I and III
  3. C.II and III
  4. D.I, II and III.
Show the answer and explanation

Answer: C (II and III)

Explanation

Retained earnings and accruals (such as taxes not yet paid) are funds generated within the company; personal savings belong to individuals.