Which of the following liabilities increase typically and create spontaneously generated funds as sales increase for the firm?
A) Long-term debt
B) Accrued wages
C) Accounts receivable
D) Property,plant,and equipment

Question

Quizplus · Accepted Answer

Accrued wages typically increase as sales increase for a firm, creating spontaneously generated funds. This is because as a company's sales grow, it often requires more labor to support the increased activity, leading to higher accrued wages before they are paid out.

Which of the Following Liabilities Increase Typically and Create Spontaneously