Concept:Internal sources of financing are funds generated from within the company itself through its own operations.
Explanation:Consider each item carefully.
i. Personal savings belong to the owners or shareholders, so they are brought into the company from outside and are external capital.
ii. Retained earnings are profits kept inside the company after dividends are paid, and they come directly from the business, so they are internal finance.
iii. Accrued taxes are expenses already recognized but not yet paid, so the company still holds that cash internally and can use it temporarily for its operations.
Therefore, retained earnings and accrued taxes are internal sources of financing for companies.
Personal savings does not qualify because it is introduced into the company externally.
The correct combination is therefore
ii and
iii.
Answer:C.
ii and
iii