Sources of own financing

In this video I will show you what the sources of own financing of companies. The sources of financing of a company can be several and very important so that the company can face the payments of suppliers, salaries and other expenses that they may have.

The own sources of financing are those actions and methods that are within the reach of the company itself. In the first place we have capital, which is the money that the capitalists put in so that the company can function, this capital must not be returned to the capitalists.

Reservations they are profits from previous years that shareholders decide to reinvest in the company itself.

Another source of funding is the amortization, the company uses depreciation to bring up the true value of its non-current assets. We continue to maintain a product with its cost price but we have been reducing the value of the earnings of the company with depreciation that are due to the obsolescence of the objects acquired.

The last source of own financing that we are going to explain are the

provisions, are an accounting element, we place part of the profits of one year as losses anticipating future losses.

You can practice what you have learned in this video about sources of own financing with the printable exercises with their solutions that I have left you on the web and you can also ask me and I will help you.