Monday, January 18, 2021

How many of the following transactions increase a company's liquidity?

How many of the following transactions increase a company's liquidity?



• Provide services on account.

• Pay workers' salaries in the current period.

• Purchase office supplies with cash.

• Pay dividends to stockholders.


A) 0.

B) 1.

C) 2.

D) 3.


Answer: B


Which of the following is the primary source of corporate equity financing?



A) Bonds Payable.

B) Common Stock.

C) Leases.

D) Notes Payable.


Answer: B


Which of the following is not a primary source of corporate debt financing?



A) Bonds Payable.

B) Common Stock.

C) Leases.

D) Notes Payable.


Answer: B

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