Multiple choice

Which of the following is an external source of finance?

  1. Retained earnings

  2. Depreciation funds

  3. Public deposits

  4. General reserve
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is external source of finance. In public deposits, the funds are accepted from the public in the form of deposits. As the public has deposited the funds, which is an outside party, it is an external source of finance. The deposits are to be paid back to the public.

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