Which of the following is considered an external source of funds for a company?a.Depreciationb.Loan repaymentc.Sale of common stockd.Retained earnings

The external source of funds for a company from the options provided is c. Sale of common stock.

Here's why:

a. Depreciation: This is not a source of funds. It is an accounting method used to allocate the cost of a tangible asset over its useful life.

b. Loan repayment: This is not a source of funds, but rather a use of funds. It's the money a company pays back to a lender.

c. Sale of common stock: This is an external source of funds. When a company sells common stock, it is raising funds from external investors.

d. Retained earnings: These are not an external source of funds. Retained earnings are the portion of a company's profit that is held or retained and saved for future use. Retained earnings could be used for funding an expansion or paying dividends to shareholders. This is an internal source of funds.