Which One of These Will Increase a Firm's Cash Balance

question 26

Multiple Choice

Which one of these will increase a firm's cash balance?

• A)an increase in inventory
• B)a decrease in accounts payable
• C)an increase in common stock
• D)an increase in new equipment

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Definitions:

Outside Supplier

An external entity or company that provides goods or services to another company, often part of the supply chain.

Idle Capacity

Unused production capacity, indicating available resources that are not currently being utilized.

Transfer Price

Transfer price refers to the price charged for goods or services transferred between departments or divisions within the same company or between affiliated entities.

Valve Division

A specific business unit within a company that focuses on the production and sale of valves.