Spontaneous Sources of Funds

question 51

Multiple Choice

Spontaneous sources of funds:

• A)are generally free of charge to the borrowing firm.
• B)generally include commercial bills and bank loans
• C)are generally funds with maturities greater than one year
• D)all of the options are true

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Definitions:

Current Values

The present market value of an asset or financial instrument, which can fluctuate over time based on market conditions.

Asset Accounts

consist of all accounts that track the assets owned by an entity, including cash, inventory, property, and equipment.

Cost

The amount of money required to purchase something or the value of the resources expended to acquire an item or service.

Fair Market Value

The price at which an asset would sell in an open and competitive market where both buyer and seller are knowledgeable, willing, and under no pressure to buy or sell.