Accruals and accounts payable are__________sources of short-term financing.

Name: Accruals and accounts payable are__________sources of short-term financing.
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Question

Quizplus · Accepted Answer

Accruals and accounts payable are both spontaneous liabilities, meaning they are generated as a result of the company's day-to-day operations without any negotiation or agreement with another party. Additionally, they are unsecured as there is no collateral backing the liability. Therefore, the correct choice is C: spontaneous, unsecured.

Accruals and Accounts Payable Are__________sources of Short-Term Financing