Which of the following is considered to be a spontaneous source of financing?

33) Trade credit is a source of spontaneous financing.

What is included in spontaneous liabilities?

Spontaneous liabilities are the obligations of a company that are accumulated as a result of the company’s day-to-day business. Spontaneous liabilities often include accounts payables, which are short-term debt obligations owed to creditors and suppliers, wages, and taxes payable.

Which of the following is the spontaneous source?

Commercial Paper, Account Payable and Bank Finance are the source of financing the working capital requirements. Explanation: “Working capital management” is managing a balance between less term financial needs and short term liabilities.

What is spontaneous source?

Some sources of funds, which are created during the course of normal business activity have zero cost and are termed as spontaneous sources. Spontaneous Sources. Some sources of funds, which are created during the course of normal business activity have zero cost and are termed as spontaneous sources.

Which is not a form of short term spontaneous credit?

Which of the following is not a form of short-term, spontaneous credit? Accrued wages.

What is spontaneous account?

Spontaneous assets are those accumulated as a result of the company’s day-to-day business operations. An increase in spontaneous assets is normally tied to an decrease in a company’s cost of goods sold or an increase in revenues. Spontaneous assets often include accounts receivables, inventories, and working capital.

What is a spontaneous account?

Are accruals spontaneous?

Examples of spontaneous liabilities include accounts payable, accrued wages, and accrued taxes.

Which of the following is not a spontaneous liabilities?

Bank overdraft, unsecured public deposits and secured short-term borrowings are not spontaneous liabilities.