Question

QUESTION: Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations of the firm.

ANSWER OPTIONS: True False You need to specifically state IN THE SUBJECT LINE if the answer is TRUE or FALSE.

EXAMPLES OF INADEQUATE RESPONSES: “I think the answer is False.” OR “The correct answer is “C.”

Postings must be no less than 200 words in length to be considered. Any posting less than 200 words in length will not be reviewed.

Answer 1

Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations of the firm.

Ans : FalseAccounts payable is not at all a source of financing rather it is a short term liability for the organisation. This occurs in the regular operation of the business. It is normally can be the working capital requirement for the smooth flow of operation such as wages and salary, raw materiel requirement, office administration cost such as stationary, office employee's salary, electricity etc.