Which One of the Following Transactions Will Increase the Liquidity

question 2

Multiple Choice

Which one of the following transactions will increase the liquidity of a firm?

• A)Cash purchase of new production equipment
• B)Payment of an account payable
• C)Cash purchase of inventory
• D)Credit sale of inventory at cost
• E)Cash payment of employee wages

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Definitions:

Nonverbal Language

Communication without the use of spoken language, including gestures, facial expressions, and body language.

Communicating

The process of conveying information or expressing ideas and feelings through speech, writing, or other forms of expression.

Culture

The shared beliefs, customs, arts, and institutions of a community, transmitted through generations.

Critical Thinking

The goal of conducting a rational examination and assessment of a problem to establish an opinion.