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

Which one of these transactions will increase the liquidity of a firm? Multiple Choice Cash purchase of new production equipment Payment of an account payable Cash purchase of inventory Credit sale of inventory at cost Which one of these transactions will increase the liquidity of a firm? Multiple Choice Cash purchase of new production equipment Payment of an account payable Cash purchase of inventory Credit sale of inventory at cost

The Correct answer is Credit sale of inventory at cost
The Liquidity is the measure of how quickly the company can
convert the Assets into cash, among the given options Credit sale
of inventory will increase the debtor while the Inventory will be
reduced leading to Higher liquidity because Debtor are considered
to be more liquid as compared to the Inventory which is Not
included while calculating Quick ratio.

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