Monday, July 14, 2014

Spontaneous source of working capital?

Spontaneous source of working capital?
Spontaneous sources of financing arise spontaneously in the firm's day-to-day operations.Trade credit is often made available spontaneously or on demand from the firm's supplies when the firm orders its supplies or more inventory of products to sell.Trade credit appears on a balance sheet as accounts payable.Wages and salaries payable, accrued interest and accrued taxes also provide valuable sources of spontaneous financing.

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