Spontaneous Current Liabilities

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Spontaneous Current Liabilities

Short-term obligations that automatically increase and decrease in response to financing needs, such as accounts payable.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Spontaneous Current Liabilities

Liabilities that a company must pay within a year that arise automatically as a result of its daily operations. Examples of spontaneous current liabilities include accounts payable and the cost of goods sold. They often change as a result the company's sales. See also: Spontaneous liabilities, spontaneous assets.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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