Which One of the Following Will Decrease the Liquidity Level

question 70

Multiple Choice

Which one of the following will decrease the liquidity level of a firm?

• A)Cash purchase of inventory
• B)Credit sale of inventory
• C)Cash sale of inventory
• D)Collection of an account receivable
• E)Proceeds from a long-term loan

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Definitions:

Service Rate

The speed at which a service or processing operation is expected or able to serve customers or produce outputs.

Poisson Distributions

Statistical models used to predict the probability of a given number of events occurring within a specified time period, based on a known average rate of occurrence.

Continuous Probability

Describes the probability of outcomes within a continuous range of values, rather than discrete outcomes.

Negative Exponential

A type of mathematical function that decreases rapidly from a positive value toward zero, often used to model decay or depreciation processes.