Accounts payable is a spontaneous source of funds which grows as the business expands.

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Accounts payable refers to the amount owed by a company to its suppliers or vendors for goods or services received but not yet paid for. As a business expands, it is likely to have more suppliers and incur more expenses, which will lead to an increase in accounts payable. Therefore, accounts payable is considered a spontaneous source of funds, which means that it arises naturally from the company's operations and does not require any explicit action to create.

Accounts Payable Is a Spontaneous Source of Funds Which Grows