The basic sources of capital for a firm include all of the following EXCEPT
A) long-term debt.
B) common stock.
C) preferred stock.
D) current liabilities.

Question

Quizplus · Accepted Answer

Current liabilities are not a source of long-term capital for a firm. Instead, they refer to short-term obligations that must be paid off within a year, such as accounts payable and taxes owed. The other options listed (long-term debt, common stock, and preferred stock) are all sources of long-term capital for a firm.

The Basic Sources of Capital for a Firm Include All