Which of the following is a source of discretionary or external financing?

Question

Quizplus · Accepted Answer

A new debt issue (option A) is a source of discretionary or external financing as it involves borrowing money from lenders. Similarly, a new equity issue (option C) is also a source of discretionary or external financing as it involves raising money by selling ownership stakes in the company to outside investors. Option B, accounts payable, is not a source of discretionary financing as it represents money owed to suppliers for goods or services already received and is considered an operating expense.

Which of the Following Is a Source of Discretionary or External