Accruals are generally considered free debt in the sense that no explicit interest is paid on funds "raised" through them.

Question

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Accruals are not an explicit form of borrowing and do not have a stated interest rate or repayment date. They are typically items included on a company's balance sheet that represent expenses or revenues that have been earned but not yet paid or received. As such, companies do not pay interest on accruals directly, making them a form of "free debt."

Accruals Are Generally Considered Free Debt in the Sense That