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

The external source of funds for a company from the options provided is b. 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. Sale of common stock: This is an external source of funds. When a company sells its common stock, it is obtaining funds from external investors.

c. Loan repayment: This is not a source of funds. In fact, it's the opposite. It's a use of funds, as the company is paying back money it had previously borrowed.

d. Retained earnings: This is an internal source of funds. It's the portion of net income which is retained by the corporation rather than distributed to its owners as dividends.