Current liabilities accounts that change "naturally" with changes in sales provide funds that tend to change at the same rate as sales. These funds are referred to as ______ funds.
A)spontaneously generated
B)additional funds
C)natural operations
D)temporary assets'
E)extemporaneous short-term

Question

Current liabilities accounts that change "naturally" with changes in sales provide funds that tend to change at the same rate as sales. These funds are referred to as ______ funds. 
A)spontaneously generated
B)additional funds
C)natural operations
D)temporary assets'
E)extemporaneous short-term

Quizplus · Accepted Answer

Spontaneously generated funds refer to those that are generated as a natural result of a business's operations, without any additional effort or investment. Current liabilities that change "naturally" with changes in sales, such as accounts payable and accrued expenses, provide funds in this manner, which tend to change at the same rate as sales. Hence, choice A is the most appropriate.

Current Liabilities Accounts That Change "Naturally" with Changes in Sales