Which of the Following Transactions Increase Cash

question 122

Multiple Choice

Which of the following transactions increase cash?
1) Convert debt to common stock
2) Credit sales
3) Increase long-term debt
4) Issue common stock

• A)1 and 3
• B)2 and 4
• C)3 and 4
• D)1,2,and 4
• E)1,2,3,and 4

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, or legal jurisdiction.

Noncontrolling Interest

A minority ownership in a subsidiary, where the parent company owns the majority but not all of the subsidiary's shares.

Treasury Stock Approach

A method of accounting for repurchased shares of stock by reducing the total available shares in the market, often affecting the calculation of earnings per share and other metrics.

Patent

A government-granted right giving an inventor exclusive rights to make, use, or sell an invention for a certain number of years.