Question

Spontaneously generated funds are generally defined as follows:a. Funds that a firm must raise externally through borrowing or by selling new common or preferred stock.
b. A forecasting approach in which the forecasted percentage of sales for each item is held constant.
c. Assets required per dollar of sales.
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

Answer 1

Answer:

None of the available options are correct

Explanation:

The most accurate answer could be as follows: funds that arise out of normal business operations from its suppliers, employees, and the government, and they include spontaneous increases in accounts payable and accruals.