Which of the following statements about funds that a firm generates spontaneously (internally) is correct?

A. In general, current liabilities that change naturally with changes in sales provide spontaneously generated funds.
B. Spontaneously generated funds are funds that a firm must raise by issuing new stocks and new bonds.
C. Notes payable, long-term bonds, and common stock provide most of the firm's spontaneously generated funds.
D. Spontaneously generated funds tend to change at the same rate as a change in the firm's net operating income.
E. Current liabilities that provide spontaneously generated funds require the firm's management to make conscious financing decisions.


Answer: A

Mathematics

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