Which of the following represents funds that arise as a natural result of a firm's business operations without the need for special arrangements?
A)equity financing
B)bank loans
C)commercial paper
D)spontaneous financing

Question

Quizplus · Accepted Answer

Spontaneous financing refers to funds that a company generates naturally from its operations, such as accounts payable, accrued expenses, and inventory financing, without the need for additional financing arrangements or external funding sources. Therefore, Option D is the correct choice. The other choices, equity financing, bank loans, and commercial paper, require specific actions to acquire funds.

Which of the Following Represents Funds That Arise as a Natural