Spontaneously generated funds are increases in accounts receivable and accounts payable that accompany sales increases.

Name: Spontaneously generated funds are increases in accounts receivable and accounts payable that accompany sales increases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Spontaneously generated funds refer to increases in liabilities (such as accounts payable) and operating assets (like inventory) that naturally occur as a company's sales grow, not increases in accounts receivable.

Spontaneously Generated Funds Are Increases in Accounts Receivable and Accounts