Your assignment involves investigating the possible sources of finance available to your client company.

The first 200 words of this essay...

By Sharjeel Tahir

Basic Information: -

You have just completed your B.A (Honours) Degree in accounting and have secured your first job as a junior accountant, working for the prestigious accounting firm, Coopers and Lybrand.

Assignment: -

Your assignment involves investigating the possible sources of finance available to your client company.

Sources of finance

All businesses need money invested in them. Sources of finance are the origins of that money. They are where the money in the business comes from. Another definition is that they create the money that is used to start-up and finance a business. Sources of finance are split into two main categories internal and external sources of

Internal sources of finance: -

Internal sources of finance are finance gained inside the business. Another definition is the generation of cash from within the company's resources/accounts. Internally generated finance is usually owner's equity and this is usually permanent. There are three main sources of internal finance.

Trading Profits: -

It can be calculated by: Gross Profit - Overheads

a) Retained profits:

Once the business starts to generate sales it