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AICPA CPA-Business Exam - Topic 1 Question 121 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 121
Topic #: 1
[All CPA-Business Questions]

Which one of the following provides a spontaneous source of financing for a firm?

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Suggested Answer: A

Choice 'a' is correct. Accounts payable provide a spontaneous source of financing for a firm.

Choice 'b' is incorrect. Accounts receivable take time to factor.

Choices 'c' and 'd' are incorrect.

Each of the following take time to issue:

C Debentures.

D Preferred stock.


by Miles at Jan 28, 2026, 02:56 AM

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Verdell
5 days ago
I remember a practice question about financing sources, and I think trade credit was mentioned as a spontaneous option.
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Jamal
10 days ago
I think a spontaneous source of financing could be accounts payable, but I'm not entirely sure if that's the right term they used in class.
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Rickie
15 days ago
I've got a few ideas on this, but I want to make sure I'm really clear on what qualifies as a "spontaneous" source of financing before I commit to an answer. Gotta be careful on these tricky wording questions.
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Dierdre
20 days ago
I'm a little unsure about this one. I'll need to review my notes on corporate finance to make sure I understand the distinctions between different financing methods. Spontaneous source is the key here.
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Javier
26 days ago
Okay, for this I'd want to focus on financing that doesn't require a lot of planning or approval, like taking out a loan or issuing stock. Something more reactive rather than a long-term strategy.
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Cherilyn
1 month ago
Hmm, this seems like it could be a tricky one. I'll need to think through the different financing sources a firm might have access to and which ones would be considered more spontaneous or immediate.
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Mayra
1 month ago
I think this is asking about different types of financing options for a firm. I'd want to consider things like equity financing, debt financing, and other potential sources of capital.
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