As Willard's business grows and propsers,his company's total assets requirements will equal ___________.
A)total sources of financing less owner's investment and retained earnings
B)spontaneous debt financing plus bank loans plus owner's investment less retained earnings
C)total sources of financing less net assets and owner's investment
D)spontaneous debt financing plus bank loans plus owner's investment plus retained earnings

Question

Quizplus · Accepted Answer

As the business grows and prospers, its total assets requirements will increase. To meet this requirement, Willard's company can use spontaneous debt financing, bank loans, owner's investment and retained earnings. Therefore, option D- spontaneous debt financing plus bank loans plus owner's investment plus retained earnings- is the best choice.

As Willard's Business Grows and Propsers,his Company's Total Assets Requirements