Which of the Following Transactions Will Not Increase the Cash

question 1

Multiple Choice

Which of the following transactions will not increase the cash ratio?

• A)Receiving cash from a common stock issue.
• B)Refinancing a current liability with long-term debt.
• C)Using cash to purchase a two-month treasury bill.
• D)Collecting an account receivable.

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Definitions:

Corporate Bond

A debt security issued by a corporation to raise capital, promising to repay the borrowed amount plus interest at a specified future date.

Nikkei

An abbreviation for the Nikkei 225 Stock Average, a leading index of Japanese stocks.

Japanese Stock Market

A collection of stock exchanges located in Japan, like the Tokyo Stock Exchange, where investors can trade shares of Japanese companies.