?Blue Ivy Inc As a Cumulative Result of These Transactions, the Liquidity of March

question 49

Multiple Choice

?Blue Ivy Inc.has the following transactions for the month of March: $$\begin{array} { l r } \text { Issued common stock } & \$ 60,000 \\\text { Purchased land by paying cash } & \$ 100,000 \\\text { Paid expenses } & \$ 25,000 \\\text { Earned cash fees } & \$ 75,000\end{array}$$ As a cumulative result of these transactions, the liquidity of Blue Ivy Inc.:

• A) ?increases by $75,000.
• B) ?increases by $10,000.
• C) ?decreases by $25,000.
• D) ?decreases by $50,000.

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Definitions:

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accrued interest from previous periods.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a pre-specified price.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not necessarily align with the calendar year.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, ensuring the debits equal the credits.