Spontaneous Liabilities Such as Accounts Payable and Accruals Represent a Source

question 160

True/False

Spontaneous liabilities such as accounts payable and accruals represent a source of financing that arise from the normal course of business.

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Definitions:

Depository Institution

A financial institution that accepts deposits from individuals and provides loan services.

Investment Bank

A financial institution that provides advisory services, financing, and investment services to individuals, corporations, and governments.

Short-term Debt Securities

Financial instruments that represent borrowed funds which must be repaid within a short time frame, typically less than one year.

Money Markets

Financial markets for short-term borrowing and lending, dealing with assets that have high liquidity and short maturities.