Spontaneous Funds Are Generally Defined as Follows

question 27

Multiple Choice

Spontaneous funds are generally defined as follows:

• A) A forecasting approach in which the forecasted percentage of sales for each item is held constant.
• B) Funds that a firm must raise externally through short-term or long-term borrowing and/or by selling new common or preferred stock.
• C) Funds that arise out of normal business operations from its suppliers, employees, and the government, and they include immediate increases in accounts payable, accrued wages, and accrued taxes.
• D) The amount of cash raised in a given year minus the amount of cash needed to finance the additional capital expenditures and working capital needed to support the firm's growth.
• E) Assets required per dollar of sales.

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Definitions:

Photophobia

An abnormal sensitivity to light, causing discomfort or pain in the eyes when exposed to light.

Macular Degeneration

A medical condition which results in blurred or no vision in the center of the visual field due to damage to the macula of the retina.

Keratitis

Inflammation of the cornea, the clear front layer of the eye, which can cause pain, reduced vision, and light sensitivity.

Retrolental Fibroplasia

A condition characterized by the abnormal development of fibrous tissue behind the lens of the eye, potentially leading to blindness; common in premature infants who have been exposed to high levels of oxygen.