Spontaneous Assets


DEFINITION of 'Spontaneous Assets'

The assets of a company that are accumulated automatically as a result of the firm's day-to-day business. These assets typically grow in proportion with sales. Examples may include increased inventory of goods for sale or accounts receivable.

BREAKING DOWN 'Spontaneous Assets'

The projected growth in spontaneous assets is an important component for firms to consider as they evaluate the need to borrow additional funds.

Similar to spontaneous assets, spontaneous liabilities move with changes in sales.

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Current Assets

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  3. Net Liquid Assets

    A measure that examines a company's net liquid financial assets. ...
  4. Long-Term Assets

    1. The value of a company's property, equipment and other capital ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Net Worth

    The amount by which assets exceed liabilities. Net worth is a ...
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  1. Do dividends affect working capital?

    Regardless of whether cash dividends are paid or accrued, a company's working capital is reduced. When cash dividends are ... Read Full Answer >>
  2. Do prepayments provide working capital?

    Prepayments, or prepaid expenses, are typically included in the current assets on a company's balance sheet, as they represent ... Read Full Answer >>
  3. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  6. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>

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