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AICPA CPA-Business Exam - Topic 1 Question 121 Discussion

Which one of the following provides a spontaneous source of financing for a firm?
A) Accounts payable.
C) Debentures.
B) Accounts receivable.
D) Preferred stock.

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?

Show Suggested Answer Hide Answer
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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Bobbie
11 hours ago
True! It’s spontaneous and doesn’t require immediate repayment.
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Lauran
6 days ago
Agreed! It’s a great way to finance operations without interest.
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Carey
11 days ago
Definitely! It’s like free credit from suppliers.
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Graciela
16 days ago
I think it's accounts payable. It helps firms manage cash flow.
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Pamella
2 months ago
Nope, small firms can use it too!
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Lon
2 months ago
I thought it was just for big companies?
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Doyle
2 months ago
Wait, isn't that just a short-term loan?
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Jesus
3 months ago
Totally agree, it's often overlooked.
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Buddy
3 months ago
Trade credit is a great example!
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Ronny
3 months ago
Isn't the answer Angel investors? They provide a pretty spontaneous source of financing.
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Bette
3 months ago
Crowdfunding seems like a spontaneous way for a firm to get financing these days.
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Cletus
3 months ago
Haha, I bet the answer is Unicorn tears. Everyone knows that's the best source of spontaneous financing!
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Shawnna
3 months ago
I think the answer is Retained earnings. That's a spontaneous source of financing, right?
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Dorothy
4 months ago
The correct answer is Venture capital. It provides a spontaneous source of financing for a firm.
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Gary
4 months ago
I feel like we covered this in our last review session, and I want to say that accrued expenses might fit the definition of spontaneous financing.
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Magda
4 months ago
I’m a bit confused; I thought spontaneous financing was related to short-term liabilities, but I can't recall the exact examples we discussed.
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Verdell
5 months 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
5 months 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
5 months 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
5 months 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
5 months 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
6 months 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
6 months 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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