Match the term with its definition.
-Short-term debts, such as accounts payable, that automatically increase in proportion to a firm's sales
A)cash budget
B)line of credit
C)net working capital
D)percentage-of-sales technique
E)pro forma financial statements
F)spontaneous debt financing

Question

Quizplus · Accepted Answer

Spontaneous debt financing refers to short-term debts that automatically increase in proportion to a firm's sales, such as accounts payable.

Match the Term with Its Definition