A Firm Should Finance Its Growth in Such a Way

question 41

Multiple Choice

A firm should finance its growth in such a way as to maintain adequate

• A) liquidity.
• B) inventory.
• C) sales.
• D) volume.

---

Definitions:

Accrued Liabilities

Accrued liabilities refer to expenses that have been incurred but not yet paid for, recognized on the balance sheet.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Cash Paid

The total amount of currency that an entity disburses in exchange for goods or services or to settle debts.

Suppliers

Entities or individuals that provide goods or services to another entity, typically in a commercial transaction.