As her accounts payable and accrued expenses rose along with her business's sales, Asanda noticed that ________ occurs.
A)spontaneous debt financing
B)trade credit financing
C)escalating debt
D)asset-based financing

Question

Quizplus · Accepted Answer

Spontaneous debt financing occurs when accounts payable and accrued expenses increase naturally with the growth of a business's sales, as these liabilities are typically tied to the level of business activity.

As Her Accounts Payable and Accrued Expenses Rose Along with Her