Spontaneous Sources of Financing Include

question 99

Multiple Choice

Spontaneous sources of financing include

• A) accounts payable and accrued expenses.
• B) notes payable and mortgages payable.
• C) long-term debt and capital leases.
• D) common stock and paid-in capital.

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Definitions:

Market Price

The current exchange price for an asset or service in the marketplace.

Discount Rate

The interest rate used to determine the present value of future cash flows or to discount future obligations.

Maturity

The predetermined date on which a financial instrument, loan, or security reaches its final payment, at which point the principal amount must be repaid.

Zero-Coupon Bond

A debt security that doesn't pay periodic interest, sold at a discount from its face value, and repays the face value at maturity.