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:

Manufacturing Processes

The series of steps involved in the production of goods, from raw materials to finished products.

Plantwide Allocation Base

A single criterion, often direct labor hours or machine hours, used to allocate the total overhead of a plant to various products or cost objects.

Budgeted Units

The quantity of products or services that are planned to be sold or produced over a specific period, as per the budget.

Plantwide Factory Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant, applied to all cost units irrespective of the department where they were produced.