As her accounts payable and accrued expenses rose along with her firm's sales, Ariel 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 sales, providing short-term financing without formal agreements.

As Her Accounts Payable and Accrued Expenses Rose Along with Her