Which of the following is a spontaneous source of financing?
A) Accrued expenses
B) Notes payable
C) Common stock
D) Paid-in capital

Question

Quizplus · Accepted Answer

Accrued expenses are a form of spontaneous financing as they arise naturally from a company's operations without the need to seek external financing or issue securities. They represent expenses that have been incurred but not yet paid, such as salaries or utilities, and are typically settled within a short period of time. Notes payable, common stock, and paid-in capital all involve deliberate actions taken by the company to obtain financing either through borrowing or equity investments.

Which of the Following Is a Spontaneous Source of Financing