Donovan Corporation's sources of capital can include all of the following EXCEPT ________.
A)cash dividends declared by Donovan's board of directors and paid to the stockholders
B)investments from stockholders
C)reinvested profits
D)loans extended by others

Question

Quizplus · Accepted Answer

Cash dividends declared and paid to stockholders are not sources of capital, but rather a distribution of profits to owners. The remaining options, investments from stockholders, reinvested profits, and loans from others are all sources of capital.

Donovan Corporation's Sources of Capital Can Include All of the Following