Which of the following is a long-term source of finance?

Option 1 -> Debt can include long-term borrowings such as bonds, debentures, and term loans that extend beyond one year.

Option 2 -> Bills Receivable are short-term instruments representing amounts due from customers, typically within 90-180 days, not a source of finance.

Option 3 -> Cash at Bank is a current asset representing liquid funds already available, not a source of finance.

Option 4 -> Bank Overdraft is a short-term borrowing facility allowing temporary negative balance, typically repayable on demand or within a short period.

Hence, Option 1: Debt -> Long-term debt (such as bonds, debentures, and term loans) represents borrowed funds repayable over an extended period (typically more than one year), making it a long-term source of finance for capital-intensive investments and business expansion -> correct