Borrowed cash such as bank loans or bonds issued to creditors is called what?
AWorking surplus
BRetained earnings
CDebt capital
DEquity capital
Answer & Solution
Correct answer: C. Debt capital
Debt capital is cash borrowed, usually through bank loans or bonds issued to creditors.
Keep practising Capital Budgeting
Browse all Capital Budgeting questions for CA Inter, or explore more Financial Management topics.
Related questions
Under which cash flow statement section is capex commonly reported?Which spending is capital expenditure as it extends asset life?Which of these spending items is a capital expenditure?Where do capitalised expenditures show up in the financial statements?Which expense is the counterpart of capital expenditure?What is capital expenditure (capex)?Payback also ignores which part of a project's cash flows?Which key weakness does the simple payback period have?