Accruals such as salaries and taxes payable are similar to trade credit in that they are spontaneous sources of financing.

Name: Accruals such as salaries and taxes payable are similar to trade credit in that they are spontaneous sources of financing.
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Question

Quizplus · Accepted Answer

Accruals, like salaries and taxes payable, are considered spontaneous sources of financing because they arise naturally in the course of business operations without the need for explicit negotiation or arrangement, similar to how trade credit operates.

Accruals Such as Salaries and Taxes Payable Are Similar to Trade