Answered: Why are accruals called spontaneous…

Business

Accounting

Why are accruals called spontaneous sources of funds, what are their costs, and why don't firms use more of them?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section16.9: Accruals And Accounts Payable (trade Credit)

Problem 1ST

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Why are accruals called spontaneous sources of
funds, what are their costs, and why don't firms use
more of them?

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