Multiple Choice
Dim Co.issues common stock of $15,000.Which of the following statements regarding the effect of this transaction on the company's liquidity and profitability metric is true?
A) The transaction increases the liquidity and decreases the profitability of the company.
B) The transaction decreases the liquidity and increases the profitability of the company.
C) The transaction increases the liquidity and has no effect on the profitability of the company.
D) The transaction has no effect on the liquidity and increases the profitability of the company.
Correct Answer:
Verified
Correct Answer:
Verified
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