Which of the following is considered to be a spontaneous source of financing?Select one:a. Accounts receivableO b. Accounts payableOc Operating leasesO d. InventoryThe focus of current asset management is on:Select one:a. cash, accounts receivable. and inventory levels.O b. all the given answers are correct.c. property, plant. and equipment acquisition.O d. investments in marketable securities.

Sources of finance involves equity debt, preferred shares, loans and other avenues. It is referred…

Answered: Which of the following is considered to…

Which of the following is considered to be a spontaneous source of financing? Select one: a. Accounts receivable O b. Accounts payable Oc Operating leases C. O d. Inventory

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MCQ: Which of the following would be classified as a cash outflow from an operating activity? a. Purchase...

See similar textbooks

Related questions

Q: To which element does the following definition correspond: It is a format where interest and…

A: Loan A loan refers to the amount which is borrowed from a financial or a non-financial institution.…

Q: Which statement of financial position accounts are most affected by financing activities? a.…

A: Changes in non current assets are reflected in cash flow from investing activities Changes in non…

Q: Outline how you would incorporate the following into the CCAPM:a. Liquidity.b. Nontraded assets. (Do…

A: The question is based on the concept of the consumption based capital asset pricing model (CCAPM).…

Q: Which of the following should be classified as financial instrument? Inventories C. Patents B.…

A: IAS 32 defines financial instrument as a " contract that gives rise to a financial asset of one…

Q: Which of the following best describes the classification and normal balance of the accounts…

A: Accounts receivable account generally shows the amount to be received from the customers against the…

Q: Define receivables & explain its the classification in the statement of financial position

A: Current asset: It can be defined as an asset that is having the potential to be converted into money…

Q: ) Explain liquid asset management as it relates to a financial institu

A: As per company policy, it s only possible to solve the first part.

Q: hich of the following cannot be qualified as a commodity certificate? A) Certificate of will B)…

A: Commodity certificate: It is a payment method used by a commodity credit corporation in lieu of…

Q: On account of monetary undertakings, the income coming about because of interest and profit…

A: Cash flow statement is the summary showing the receipts and payments of cash and cash equivalents in…

Q: (a)Explain, using practical example the effect of accruals figures on the preparation of a…

A: "Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following groups of accounts increase with a credit? Oa. assets, common stock, revenues…

A: Liabilities, common stock and revenues will be increased with a credit.

Q: Determine if each statement represents the allowance (A) or direct write-off (DW) approach. On the…

A: The Answer

Q: Prepare only Financing activity statement

A: Introduction: Statement of cash flows: All cash in and out flows of transactions are shown in…

Q: hy finance dep

A: In an organization a finance department deals with procuring as well as managing the finances of the…

Q: What accounts in the statement of financial position are taken into consideration to calculate the…

A: The interest and other charges incurred by the Company while borrowing cash are referred to as the…

Q: which of the following source of finance relates to suppliers ? a. Commercial Paper b. Bank…

A: There are various sources of finance

Q: From othe basic accounting equation Assets = Liabilities + Owners Equity, where does uncollectible…

A: As per accounting equation, assets = Liabilities + owners' equity

Q: Capitalizing a cost involves increasing what type of account?a. Liabilityb. Expensec. Stockholders’…

A: An asset is something which contains future economic value or future benefit. A liability is…

Q: Classify the accounts as either an asset (A), liability (L), or equity (EQ) account. Note Receivable

A: Note Receivable means to receive the money in future against the note owed by any debtor of the…

Q: Is sales listed as liability equity revenue expense or an account

A: Sales generate revenue for the business. It is main purpose of the business to make more and more…

Q: A firm's financing costs include Select one: A. both A and B. B. interest expense C. depreciation…

A: The cost of interest or any other cost that is incurred by the firm at the time of borrowing funds…

Q: Financial intermediaries provide which of the following?

A: Financial Intermediaries: They are intermediaries or middlemen between the two parties for financial…

Q: Establish a compensatory equilibrium. In financial statements, how are compensating balances…

A: Here is the Answer

Q: Another term used for a financial asset is ________. a. debt financing b. equity financing c.…

A: Solution: Another term used for a financial asset is "financial instrument".

Q: Classify each of these items as an asset, liability, or equity. I need "Share Capital - Ordinary"…

A: Corporation- An organization that has been registered as a corporation under a corporation act has…

Q: Outline the accounting procedures involved in applying the direct-financing method.

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: The liabilities on a balance sheet are represented by which of the following?Choose one answer.a.…

A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…

Q: One of the roles of financial markets is to: O A. conduct fiscal policy. O B. transfer funds from…

A: In today's era of globalization, Financial market is the most important and indispensable part of…

Q: What is meant by liquidity? Rank the following assetsfrom one to five in order of liquidity.(a)…

A: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities which are due.…

Q: What is articulation of the financial statement means? Elaborate.

A: Financial statements are the statements which plays an important role for an effective investment…

Q: Differentiate between the use of receivables in financing arrangements accountedfor as a secured…

A: Meaning of Financing with Receivable Financing receivable is refer as the arrangement in which…

Q: Management of current liabilities arises, in part, because of a concern over a. (profitability).…

A: Current liabilities are obligations on an entity that are to be compensated by the organization…

Q: Which of the following ratios would a lender find most useful in monitoring a porrower's ability to…

A: Analysis of various options: 1) P/E ratio - It is used for measuring the price of the stock of a…

Q: Liabilities a. possess service potential. O b. O c. d. are things of value used by the business in…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1.- To which element does the following definition correspond: It is a format where interest and…

A: A loan refers to the sum of money borrowed, which is expected to be paid to the lender along with…

Q: The increase of acc. Receivable can be include in O Inflow in investing activities O Outflow in…

A: Cash flow statement means the statement which shows the cash flow in or out of business enterprises…

Q: Which of the following are the ways that a company can finance the purchase of assets? Equity…

A: the correct option with proper explanation are as follows

Q: Which of the following statements are true regarding financial instruments? (i) Financial…

A: A primary instrument is a financial asset whose price is determined solely by its market value.…

Q: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

Q: What is meant by liquidity? Rank the following assets from one to five in order of liquidity.…

A: Liquidity is the time period within which an asset can be converted into Cash or a Liability is…

Q: Which of the following is a connector account? O Retained Earnings O Prepaid Rent O Common Stock O…

A: Connector accounts are those accounts which connects or joins two particular financial statements.

Question

Which of the following is considered to be a spontaneous source of financing?
Select one:
a. Accounts receivable
O b. Accounts payable
Oc Operating leases
O d. Inventory
The focus of current asset management is on:
Select one:
a. cash, accounts receivable. and inventory levels.
O b. all the given answers are correct.
c. property, plant. and equipment acquisition.
O d. investments in marketable securities.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

I. Definition of the Sources of finance

VIEW

II. Solution

VIEW

III. Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

1. What is the objective of a financial statement? 2. What are the components of a financial statement? 3. What is an SFP? 4. What are the two forms of SFP? 5. What is an asset? 6. What are the essential characteristics of an asset? 7. What is an operating cycle? 8. What is a current asset? 9. What is a noncurrent asset? 10. What is a liability? 11. What are the essential characteristics of a liability? 12. What is a current liability? 13. What is a noncurrent liability? 14. What are the elements comprising the equity?
Please help with this Accounting type Question: Long term solvency is indicated by A. Asset Liability Ratio B. Debt Equity Ratio C. Interest Coverage Ratio D. All are correct
List the valuation techniques currently used for the following items on the balance sheet and discuss why. Asset Measurement Basis Cash Accounts receivable Marketable securities Inventory Investments Property, plant, and equipment Noncurrent liabilities
Another term used for a financial asset is ________. a. debt financing b. equity financing c. financial system d. financial instrument
Common categories of a classified balance sheet include Current Assets, Long-Term Investments, Plant Assets, Intangible Assets, Current Liabilities, Long-Term Liabilities, and Equity. For each of the following items, identify the balance sheet category where the item typically would best appear. If an item does not appear on the balance, indicate that instead. Classification 1. Long-term investment in stock Long-term investments 2. Depreciation expense-Building 3. Prepaid rent (2 months of rent) 4. Interest receivable Current assets 5. Taxes payable (due in 5 weeks) Current liabilities 6. Automobiles Plant assets 7. Notes payable (due in 3 years) 8. Accounts payable 9. Cash 10. Patents Account Title Long-term liabilities Current liabilities Current assets Intangible assets Account Title 11. Uneamed services revenue 12. Accumulated depreciation-Trucks 13. Prepaid insurance (expires in 5 months) 14. Buildings 15. Store supplies 16. Office equipment 17. Land 18. Repairs expense 19. Office…
Financing activities include a. lending money b. acquiring investments c. issuing debt d. acquiring long-lived assets
Transactions involving the purchase and sale of long-term assets, investing in equity securities, lending money, and collecting the principal on related loans are called a.investing activities. b.operating activities. c.buying and selling activities. d.financing activities.
Directions: Fill in the following table using the equation: ∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity. Indicate the name of the noncash asset, liability, or equity account affected by the transaction and if change in cash is classified as operating (O), investing (I), financing (F), or noncash (NC). The first line has been completed for you as an exampleItem∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity1. Prepaid office rent for cash -O = - + Prepaid Rent + + 2. Sale of land held for cash = - + + 3. Cash payment of taxes payable = - + + 4. Issue preferred stock to investors for cash = - + + 5. Purchase equipment that is financed directly by the seller = - + + 6. Paid cash dividend = - + + 7. Pay notes payable = - + + 8. Pay interest payable = - + +
Liquid assets is determined by Select one: a. Current assets - current liabilities O b. Current liabilities- Bank overdraft c. Current assets +stock+ prepaid expenses O d. Current assets-stock-Prepaid expenses
Which of the following would be classified as a cash outflow from an operating activity? a. Purchase of an investment b. Payment of dividends c. Purchase of equipment d. Payment of goods purchased from suppliers
Which of these transactions would be part of the financing section? A. inventory purchased for cash B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in cash
Which of the following transactions is a financing activity? Select one: a. Cash paid for purchase of equipment b. Dividend payments to shareholders, paid in cash c. Inventory purchased for cash d. Sales of product, for cash