As Her Accounts Payable and Accrued Expenses Rose Along with Her

question 39

Multiple Choice

As her accounts payable and accrued expenses rose along with her business's sales, Asanda noticed that ________ occurs.

• A)spontaneous debt financing
• B)trade credit financing
• C)escalating debt
• D)asset-based financing

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Definitions:

Postdated Check

A check written with a date in the future, preventing the check from being deposited or cashed until that date.

Properly Payable

Refers to checks or drafts that meet all criteria for payment by the bank on which they are drawn, in accordance with the account holder's instructions and the bank's agreement with the customer.

Refusing To Pay

Refusing to pay describes a situation where a party deliberately does not settle a financial obligation, debt, or bill owed to another.

Postdated

Referring to a check or other document dated at some point in the future, not effective or valid until that date.