Which of the following is a spontaneous source of financing?
A)Accrued wages
B)Preferred stock
C)Trade credit
D)Both A and C

Question

Quizplus · Accepted Answer

Accrued wages and trade credit are both examples of spontaneous sources of financing because they do not require any additional effort or negotiation to obtain. Accrued wages represent the amount of money owed to employees for work they have already completed, while trade credit is extended by suppliers to businesses based on their existing relationship and creditworthiness. Preferred stock, on the other hand, is a form of equity financing that requires companies to issue shares to investors in exchange for capital.

Which of the Following Is a Spontaneous Source of Financing