Which of the Following Actions Would Improve a Firm's Liquidity

question 24

Multiple Choice

Which of the following actions would improve a firm's liquidity?

• A) purchasing inventories for cash
• B) purchasing inventory on trade credit
• C) purchasing inventory with long-term debt
• D) buying machinery with long-term debt

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Definitions:

Simplify

The process of writing an expression in a more compact or simplified form without changing its value, by performing all possible operations and reducing complexity.

Missing Factor

Refers to an unknown quantity in multiplication that, when multiplied with a known quantity, yields a given product.

Fill In

A phrase often used in education and testing to describe a task where the respondent must complete or provide missing information.

Combine

The act of merging or bringing things together to form a whole, often used in mathematics to refer to combining like terms or equations.