Which One of These Transactions Will Increase the Liquidity of a Firm

question 19

Multiple Choice

Which one of these 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:

HR Departments

Divisions within an organization focused on managing recruitment, employment, training, and well-being of staff.

Performance Improvement

An ongoing process of identifying, evaluating, and improving the performance of work within an organization to increase output or efficiency.

Occupational Intimacy

A deep familiarity or bond that develops between colleagues or within professions, often leading to increased collaboration and understanding.

High-Performance Work System

An approach to organizational management that aims to enhance performance and competitiveness through the optimal alignment of human resources practices.