Question

Which source of fund does not involve any explicit cost in the form of interest, dividend or
floatation cost?
(a) Trade Credit (b) Retained Earnings
(c) Factoring (d) Public Deposit

Answer 1

Answer:

i think the correct answer is option b

Explanation:

pls mark as brainlist

Answer 2

Retained earnings is a source of fund that does not involve any explicit cost in the form of interest, dividend or floatation cost.

• Retained earnings are a type of equity and are therefore reported in the shareholders' equity section of the balance sheet.
• Although retained earnings are not themselves an asset, they can be used to purchase assets such as inventory, equipment, or other investments.
• Therefore, a company with a large retained earnings balance may be well-positioned to purchase new assets in the future or offer increased dividend payments to its shareholders.