Characteristics of accruals as a source of financing include:
A)spontaneous.
B)costless.
C)non-controllable by financial manager.
D)a and c
E)All of the above

Question

Quizplus · Accepted Answer

Accruals are considered a source of financing that is spontaneous because they occur naturally as a business operates, such as wages payable or taxes payable. They are costless because they do not directly involve interest payments or fees. While the timing and amount of accruals can be influenced to some extent by management decisions, they are largely non-controllable by the financial manager in their essence, as they are governed by operational needs and regulatory requirements.

Characteristics of Accruals as a Source of Financing Include