A company who issues bonds or stocks in result raised funds which finally____________?
Correct answer: B. Increases cash
- A. Increases liabilities
- B. Increases cash
- C. Increases equity
- D. Decreases cash
Explanation
When a company issues bonds or stock for financing, it receives the proceeds in cash. Bonds increase liabilities and stock increases equity, but the immediate common result described here is increased cash.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
A stock which is hybrid and works as a cross between debt and common stock is considered as_______________?
An annuity with an extended life is classified as_____________?
rate which is divided by compounding periods to calculate periodic rate must be___________________?
Procedure of finding present values in time value of money is classified as____________?
In calculation of time, value of money, "N "represents___________?
Payment if it is divided with interest rate will be formula of__________?