Here's the question bank on all the accountancy topics.
Spontaneous financing includes _______.
The correct answer is Accounts payable. Spontaneous FinancingIt refers to financing that arises out of regular, day-to-day operations. Spontaneous sources of financing include all those sources that are available upon demand ( eg. trade credit, accounts payable) or that arise naturally as a part of doing business. Accounts payableIt is an account within the general ledger that represents a company's obligation to pay off a short-term debt to its creditors or suppliers. The sum of all outstanding amounts owed to vendors is shown as the accounts payable balance on the company's balance sheet. Additional Information?Account ReceivableAccounts receivable is an asset account on the balance sheet that represents money due to a company in the short term. Accounts receivables are created when a company lets a buyer purchase their goods or services on credit. Short-Term LoansIt is a type of loan that is obtained to support a temporary personal or business capital. As it is a type of credit, it involves repaying the principal amount with interest by a given due date, which is usually within a year from getting the loan. A-Line of CreditA line of credit is a credit facility extended by a bank or other financial institution to a government, business, or individual customer that enables the customer to draw on the facility when the customer needs funds. A line of credit takes several forms, such as an overdraft limit, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, etc.
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