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:
A)cash flow and balance sheets.
B)accounts receivable and accounts payable.
C)assets and liabilities
D)debt and equity.

Question

Quizplus · Accepted Answer

Debt and equity are the most common methods of financing a business startup. Debt involves borrowing money that must be repaid with interest, while equity involves selling ownership in the company to investors. This allows Regina to secure the necessary funds for equipment and supplies without negatively impacting her cash flow or assets. As a new business, Regina may not have existing cash flow or assets to draw from, so these options may not be feasible. Likewise, accounts receivable and accounts payable are typically used for ongoing business transactions, not startup costs. Balance sheets and liabilities would also be important to consider, but they are not methods of paying for equipment and supplies.

Regina Wants to Open Her Own Coffee Stand