Regina wants to open her own coffee stand. To do that she will need equipment and supplies. The two methods Regina can use to pay for these items are _____ and _____.
A) cash flow; balance sheets
B) accounts receivable; accounts payable
C) assets; liabilities
D) debt; equity

Question

Quizplus · Accepted Answer

The two methods mentioned in the question are related to financing. Cash flow and balance sheets are not financing methods. Accounts receivable and accounts payable are also not relevant since Regina is not dealing with providing credit to customers or paying off debts. Assets and liabilities are accounting concepts, not financing methods. The best choice is D because debt and equity are the two main financing methods that Regina can use to pay for her equipment and supplies. Debt involves borrowing money that must be paid back over time with interest, while equity involves giving up ownership in the business in exchange for funding.

Regina Wants to Open Her Own Coffee Stand