Accrued expenses represent a spontaneous form of financing.

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Accrued expenses are liabilities that have been incurred but not yet paid. They represent a form of financing because the company has received goods or services but has not yet paid for them, which allows them to use their cash for other purposes in the short term. However, this form of financing is not considered voluntary, as it arises from normal business operations and is a necessary part of doing business.

Accrued Expenses Represent a Spontaneous Form of Financing