Question

Select all that apply

Which of the following are common financial instruments that are used to finance or expand a company's operations? (Select all that apply.)

Property, plant and equipment

Corporate bonds

Accounts receivable

Common stock

Preferred stock

Answer 1

Common financial instruments that are used to finance or expand a company's operations are common stock, preferred stock, debentures, corporate bonds, etc.

Purchase of property, plant and equipment is an investing activity of the business and is not a financing activity.

Accounts Receivable is an operating activity and not a financing activity.

Hence, the common financial instruments that are used to finance or expand a company's operations are

Corporate Bonds

Common Stock

Preferred Stock