Would the Following Activities Increase or Decrease the Firm's Cash

question 33

Essay

Would the following activities increase or decrease the firm's cash balance?
a.Inventories are increased.
b.The firm reduces its accounts payable.
c.The firm issues additional common stock.
d.The firm buys new equipment.

---

Definitions:

Priority Claim

A claim that is given preference or superior right in the payment of debts, often in bankruptcy proceedings.

Writ of Execution

A court order granted to enforce the judgment of the court, allowing for the seizure of property or assets.

Judgment

encompasses the final decision or order issued by a court regarding the legal matters before it, determining the rights and obligations of the parties involved.

Alimony

A financial support paid by one ex-spouse to the other after a divorce or legal separation.