Spontaneous liabilities such as accounts payable and accruals represent a source of financing that arise from the normal course of business.

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Spontaneous liabilities such as accounts payable and accruals are a type of financing that arises from the normal course of business, such as purchasing goods or services on credit or incurring expenses that have not yet been paid. These liabilities typically do not require any formal financing arrangements or agreements and are generally considered to be a natural aspect of operating a business.

Spontaneous Liabilities Such as Accounts Payable and Accruals Represent a Source