Internal funds generated by corporations include retained earnings and non cash expenses such as depreciation and deferred taxes.

Question

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Internal funds generated by corporations include retained earnings, which are profits that are not distributed to shareholders as dividends, but rather reinvested back into the company. Non-cash expenses such as depreciation and deferred taxes can also contribute to internal funds, as they are subtracted from revenues when calculating net income, even though they do not involve an actual outflow of cash.

Internal Funds Generated by Corporations Include Retained Earnings and Non