Question

Raybrook Inc. has retained earnings of $78,000 at the end of the accounting year. In the next accounting period, it plans to use a part of this earning in purchasing a warehouse. Which source of funding is this retained earning a part of? A. external source B. internal source C. stocks D. preference shares

Answer 1

I guess the answer is

A:external source

Answer 2

B. internal source

Explanation:

Sources of funding or financing, are the sources from where the money comes from to finance and pay for elements that the business, institution or organization needs, in thsi case since it is money that the company already had, and its the earnings of the company, it is an internal source since the company is providing it, if it was a loan, or a emission of bonds to increase the capital.