Question

which of the following is not internal source of finance?
A debenture B Depreciation C equity shares D preference shares​

Answer 1

Explanation:

Which of the following is not source of Funds?

Medium

share

Share

Answer

Correct option is

C

Issue of bonus shares

By source of funds we mean that money is coming in the business. In the given question all of them are sources of funds except issue of bonus shares. The company issues bonus shares out of its own reserves and hence there is no money received by the company for such shares. Rest all being sale of fixed assets, issue of share capital and issue of shares for consideration other than cash are a part of sources of funds.

Answer 2

The correct option is Depreciation.

• Money that originates from within an enterprise is referred to as internal financing sources. A firm can employ a variety of internal techniques, including owner capital, shares, and the total asset sales.
• The practice of attributing the cost of a fixed item to expenditure over time is known as depreciation.
• Depreciation is classified as a noncash item since it does not affect the cash balance. Thus, it is not a source of cash in this context.