{"id":57420,"date":"2024-04-16T01:01:42","date_gmt":"2024-04-16T01:01:42","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57420"},"modified":"2024-04-16T01:01:42","modified_gmt":"2024-04-16T01:01:42","slug":"which-of-the-following-is-not-a-spontaneous-source-of-short-term-funds","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-spontaneous-source-of-short-term-funds\/","title":{"rendered":"Which of the following is not a spontaneous source of short-term funds?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Trade credit&#8221; option2=&#8221;Accrued expenses&#8221; option3=&#8221;Provision for dividend&#8221; option4=&#8221;All of the above&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is: C. Provision for dividend.<\/p>\n<p>A spontaneous source of short-term funds is a source of funds that arises naturally from the firm&#8217;s operations. Trade credit, accrued expenses, and short-term loans from banks are all examples of spontaneous sources of short-term funds.<\/p>\n<p>A provision for dividend is not a spontaneous source of short-term funds. A provision for dividend is a liability that a company records when it declares a dividend. The company must pay the dividend out of its cash flow, which is not a spontaneous source of funds.<\/p>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li>Trade credit: Trade credit is a form of short-term financing that a company receives from its suppliers. When a company buys goods or services on credit, it is essentially borrowing money from its suppliers. Trade credit is a spontaneous source of funds because it arises naturally from the company&#8217;s operations.<\/li>\n<li>Accrued expenses: Accrued expenses are expenses that a company has incurred but has not yet paid. For example, if a company has not yet paid its employees for the current month, the wages that are owed to the employees are considered accrued expenses. Accrued expenses are a spontaneous source of funds because they arise naturally from the company&#8217;s operations.<\/li>\n<li>Short-term loans from banks: Short-term loans from banks are a form of short-term financing that a company can obtain from its bank. Short-term loans from banks are a spontaneous source of funds because they arise naturally from the company&#8217;s operations.<\/li>\n<li>Provision for dividend: A provision for dividend is a liability that a company records when it declares a dividend. The company must pay the dividend out of its cash flow, which is not a spontaneous source of funds.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Trade credit&#8221; option2=&#8221;Accrued expenses&#8221; option3=&#8221;Provision for dividend&#8221; option4=&#8221;All of the above&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-57420","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following is not a spontaneous source of short-term funds?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-is-not-a-spontaneous-source-of-short-term-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following is not a spontaneous source of short-term funds?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Trade credit&#8221; 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