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

question 97

Multiple Choice

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

• A) repurchasing stock
• B) selling bonds and increasing cash
• C) buying bonds
• D) increasing the company's dividend payments

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Definitions:

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise on credit.

Special Journal

A financial journal designed for recording a specific type of transaction, helping in streamlining and categorizing financial entries.

Cash Receipts Journal

An accounting journal used to record all receipts of cash, including sales made for cash and payments received from debtors.

Accounts Receivable Journal

A ledger used to record sales transactions where payment is to be received in the future, detailing each customer’s purchase on credit.