A company who issues bonds or stocks in result raised funds which finally____________?
Correct answer: C. Increases cash
- A. Increases liabilities
- B. Increases equity
- C. Increases cash
- 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.
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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.
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