The money that firms raise to finance their activities is called ________.

Question

Quizplus · Accepted Answer

Capital refers to the funds that a firm raises to finance its activities, whether through the issuance of stock or the borrowing of money. The capital budget refers specifically to the budget allocated for long-term investments, while working capital is the funds available for day-to-day operations. Accruals are revenues or expenses that have been recognized but not yet paid or received.

The Money That Firms Raise to Finance Their Activities Is