Accruals Arise Automatically from a Firm's Operations and Are "Free

question 120

True/False

Accruals arise automatically from a firm's operations and are "free" capital in the sense that no explicit interest must normally be paid on accrued liabilities.

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Definitions:

Credit Score

A numerical expression based on a level analysis of a person's credit files, representing the creditworthiness of an individual.

Utility Bills

Monthly invoices sent to consumers for the consumption of public services such as electricity, water, natural gas, and sewage services.

Minimum Payment

The smallest amount of a credit card bill that must be paid each month to avoid defaulting on the debt.

Finance Fee

A charge associated with the management or processing of financial transactions.