Which of the Following Will Reduce the Liquidity of a Firm

question 128

Multiple Choice

Which of the following will reduce the liquidity of a firm? An increase in

• A) short-term notes payable.
• B) accounts payable.
• C) current assets.
• D) both A and B.

---

Definitions:

Self-Regulatory Programs

Initiatives voluntarily undertaken by industries or companies to monitor and regulate their own behavior according to established guidelines or standards.

Better Business Bureau

A non-profit organization focused on advancing marketplace trust, helping consumers identify trustworthy businesses.

Self-Regulatory Association

An organization created by members of an industry to enforce fair and ethical practices within that industry without direct government intervention.

Better Business Bureau

A nonprofit organization focused on advancing marketplace trust, providing reviews on businesses, and handling consumer complaints.