Which of the following is considered to be a spontaneous source of financing?
A) Operating leases
B) Accounts receivable
C) Inventory
D) Accounts payable

Question

Quizplus · Accepted Answer

Accounts payable are considered to be a spontaneous source of financing because they arise naturally as a result of a business purchasing goods or services on credit from suppliers. As such, they do not require any special effort to obtain or negotiate and are a common part of a business's working capital. Operating leases, accounts receivable, and inventory are all examples of assets that can be used to secure financing, but they require more active management and negotiation.

Which of the Following Is Considered to Be a Spontaneous