Spontaneously generated funds are generally defined as follows:

a) Assets required per dollar of sales.

b) A forecasting approach in which the forecasted percentage of sales for each item is held constant.

c) Funds that a firm must raise externally through borrowing or by selling new common or preferred stock.

d) Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include spontaneous increases in accounts payable and accruals.

e) The amount of cash raised in a given year minus the amount of cash needed to finance the additional capital expenditures and working capital needed to support the firm’s growth


  • avatar
    mathquestions12
    4 Aug 2012 05:07:13 GMT

    correct answer is d - Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include spontaneous increases in accounts payable and accruals.


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