A. Retained earnings will increase spontaneously with increases in sales because as sales increase, net income also generally increases. The increase in net income will lead to a higher balance in the retained earnings account in the equity section of the balance sheet.

B. Accounts payable will increase spontaneously with increases in sales because as sales increase, so will purchases of direct materials (for a manufacturer) or of inventory (for a reseller). These additional purchases will naturally lead to a higher level of accounts payable.

C. Accrued salaries and wages will increase spontaneously with increases in sales because as sales increase, additional employees will need to be hired to support the increased sales. The increase in staff will naturally lead to a higher level of accrued salaries and wages.

D. Borrowed funds such as notes payable do not increase spontaneously with increases in sales. The firm must make an effort to cause its borrowings to increase, by making intentional arrangements to borrow the funds.