Question

Which of the following sources of financing is considered spontaneous because it fluctuates naturally with changes...

  1. Which of the following sources of financing is considered spontaneous because it fluctuates naturally with changes in ordinary business operations/transactions without management making formal decisions?

a.

Commercial paper

b.

Long-term bond

c.

Notes payable

d.

Trade credit

e.

Equity
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Spontaneous source of finance is one which arise out of routine operations. Can be done by without any special actions by company. It changes with normal operations of company without finalization from the management.

For examples. Trade credits, accruals etc.

Non spontaneous source of finance refers to this that do not occur from day to day operations. It has to be finalized by management decision.

For example. Commercial paper

  Trade credit is considered as spontaneous because it arises naturally in the course of business

Commerical Paper,Long Term bond, Notes Payable Equity are Non Spontaneous Source as it requires a set of action between the corporation and its parties.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
QUESTION: Accounts payable are spontaneous secured sources of short-term financing that arise from the normal operations...
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.
1. For each transaction, indicate whether a company would classify the related account as an asset,...
1. For each transaction, indicate whether a company would classify the related account as an asset, liability, stockholders' equity, dividend, revenue, or expense. Transactions Related Accounts Account Classification 1. Receive cash from investors. Common Stock 2. Pay rent for the current period. Rent Expense 3. Purchase office equipment. Equipment 4. Pay cash to stockholders. Dividends 5. Provide services to customers. Service Revenue 2. Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Indicate the account classification for each...
.1. Which of the following is not a correct statement about accounting? a. Generally accepted accounting...
.1. Which of the following is not a correct statement about accounting? a. Generally accepted accounting principles (GAAP) is a set of accounting standards used in the preparation of financial statements. b. Financial Accounting Standards Board (FASB) is a private organization delegated by the Federal Reserve with the responsibility to establish the GAAP. c. Management accountants work with a business or nonprofit organizations, preparing reports and analyzing financial info. d. Public accountants provide a variety of accounting services for clients...
QUESTION 9 Other things held constant, what happens with a short CCC? a. The firm’s working...
QUESTION 9 Other things held constant, what happens with a short CCC? a. The firm’s working capital management is more effective. b. The firm’s administrative costs are more effective. c. The firm’s inventory management is more effective.. d. The firm’s working capital management is less effective. 1 points    QUESTION 10 Which statement best describes short-term versus long-term financing? a. The flexibility, cost, and riskiness of short-term versus long-term credit are dependent on the type of credit that is actually...
(Bold or colour in your choice) 1)Which one of the following concerning a conservative financing strategy...
(Bold or colour in your choice) 1)Which one of the following concerning a conservative financing strategy is correct?       a. Short-term funds are used to a great extent.       b. . Only non-spontaneous debt financing is used       c. Long-term funds are only used to finance long-term needs.       d. It is a relatively expensive strategy       2) A firm can manage its cash conversion cycle by …       a. accelerating the collection of accounts receivable       b. stretching accounts...
1.An obligation of a business that represents the claims of others against the assets of he...
1.An obligation of a business that represents the claims of others against the assets of he business is called a(n) * A.asset B.liability C.expense D.revenue E.equity 2.The general journal provides a place for recording * A.the amount of each debit and credit B.an explanation of the transaction C.the transaction date D.the names of the accounts involved E.All of these 3.An exchange of economic consideration between two parties that causes a change in assets, liabilities or equity is called * A.prepaid...
Questions from Choice Hotels Note: Use the ratios in your answers, and explain what the ratios...
Questions from Choice Hotels Note: Use the ratios in your answers, and explain what the ratios mean.   Note: Shareholder equity remains negative at the end of 2017. The deficit is declining. The large negative equity was caused by earlier purchases of Treasury Stock. This will make the equity multiplier, return on equity, and the debt to equity ratios meaningless. 1. To help improve our operations, comment on how we are doing with respect to asset management. Are there any areas...
1) Which of the following is not a valid way that a CRM system can collect...
1) Which of the following is not a valid way that a CRM system can collect information? A. accounting system B. order fulfillment system C. inventory system D. customer’s personal computer 2)Which of the following is a common marketing CRM metric? A. number of new prospective customers B. average number of service calls per day C. average time to resolution D. cost per interaction by marketing campaign 3)Which question below represents a CRM reporting technology example? A. Why did sales...
Question 1 Which of the following is demand-pull inflation associated with? a. decreasing aggregate demand and...
Question 1 Which of the following is demand-pull inflation associated with? a. decreasing aggregate demand and lower unemployment b. increasing aggregate demand and lower unemployment c. decreasing aggregate demand and greater unemployment d. increasing aggregate demand and greater unemployment Question 2 Which of the following is a strategy a bank might use in order to meet a deficiency of excess reserves? a. deposit vault cash with the Bank of Canada b. convert some of its deposit at the Bank of...
Which architectural pattern is most appropriate for the following multi-user, web-based system for providing a film...
Which architectural pattern is most appropriate for the following multi-user, web-based system for providing a film and photograph library?(1 Point) Please read textbook Chapter 6.3 Architectural Patterns MVC Pattern which separates presentation and interaction from the system data Layered architecture which organizes the system into layers, with related functionality associated with each layer Repository architecture - all data in a system is managed in a central repository that is accessible to all system components. Components do not interact directly, only...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT