Multiple Choice
Loans are different from scholarships and grants since ____.
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1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
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Decisions about financing refer to the:
A
preparation of tax returns for a company
B
acquisition of funds needed by a business
C
recording of daily business transactions
D
allocation of resources for production
Verified step by step guidance1
Understand the concept of financing decisions: Financing decisions involve determining how a business acquires the funds it needs to operate and grow. This includes decisions about debt, equity, and other sources of funding.
Eliminate unrelated options: Preparation of tax returns and recording of daily business transactions are not related to financing decisions. These are part of tax compliance and bookkeeping, respectively.
Focus on the correct context: Financing decisions are not about the allocation of resources for production. That falls under operational or investment decisions.
Identify the correct answer: Financing decisions specifically deal with the acquisition of funds needed by a business, such as raising capital through loans, issuing shares, or other financial instruments.
Conclude: The correct answer is 'acquisition of funds needed by a business,' as it directly relates to the concept of financing decisions.
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