Spontaneous sources of financing include
A) accounts payable and accrued expenses.
B) notes payable and mortgages payable.
C) long-term debt and capital leases.
D) common stock and paid-in capital.

Question

Quizplus · Accepted Answer

Spontaneous sources of financing are those that arise naturally from a company's operations, such as accounts payable and accrued expenses. These sources do not require a specific request or application from the company, but rather are automatically generated through normal business activities. Notes payable, mortgages payable, long-term debt, capital leases, common stock, and paid-in capital are not considered spontaneous sources of financing.

Spontaneous Sources of Financing Include