{"id":59839,"date":"2024-04-16T01:44:21","date_gmt":"2024-04-16T01:44:21","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59839"},"modified":"2024-04-16T01:44:21","modified_gmt":"2024-04-16T01:44:21","slug":"in-a-profitable-firm-total-sources-of-funds-will-always-total-uses-of-funds","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-a-profitable-firm-total-sources-of-funds-will-always-total-uses-of-funds\/","title":{"rendered":"In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds."},"content":{"rendered":"<p>[amp_mcq option1=&#8221;be less than&#8221; option2=&#8221;be greater than&#8221; option3=&#8221;be equal to&#8221; option4=&#8221;None of these&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. be equal to.<\/p>\n<p>In a profitable firm, total sources of funds will always be equal to total uses of funds. This is because the firm&#8217;s revenues will always be greater than or equal to its expenses. The difference between revenues and expenses is called profit, and this profit can be used to finance the firm&#8217;s activities.<\/p>\n<p>Option A is incorrect because total sources of funds cannot be less than total uses of funds. If total sources of funds were less than total uses of funds, the firm would have to borrow money or sell assets to finance its activities. This would mean that the firm is not profitable.<\/p>\n<p>Option B is incorrect because total sources of funds cannot be greater than total uses of funds. If total sources of funds were greater than total uses of funds, the firm would have more money than it needs to finance its activities. This would mean that the firm is not using its resources efficiently.<\/p>\n<p>Option D is incorrect because total sources of funds must always be equal to total uses of funds in a profitable firm.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;be less than&#8221; option2=&#8221;be greater than&#8221; option3=&#8221;be equal to&#8221; option4=&#8221;None of these&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-59839","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-a-profitable-firm-total-sources-of-funds-will-always-total-uses-of-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;be less than&#8221; 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