Which of the Following Defines Spontaneously Generated Funds

question 39

Multiple Choice

Which of the following defines spontaneously generated funds?

• A) the amount of 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 are obtained automatically from normal operations, and they include spontaneous increases in accounts payable and accruals, plus additions to retained earnings