Accruals and accounts payable are ________ sources of short-term financing.
A) negotiated, secured
B) negotiated, unsecured
C) spontaneous, secured
D) spontaneous, unsecured

Question

Quizplus · Accepted Answer

Accruals and accounts payable are both examples of spontaneous sources of short-term financing, meaning they arise naturally in the course of business operations. These types of financing are also unsecured, meaning they do not require collateral or a formal agreement to be put in place. Therefore, the best choice is D - spontaneous, unsecured.

Accruals and Accounts Payable Are ________ Sources of Short-Term Financing