1. Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet?
a. The company issues new common stock. b. The company repurchases common stock. c. The company pays a dividend. d. The company purchases a new piece of equipment. e. The company gives customers more time to pay their bills.
2. Which of the following items can be found on a firm’s balance sheet under current liabilities?
a. Accounts receivable. b. Depreciation expenses. c. Accrued amortization charges. d. Cost of goods sold. e. Accrued wages.