Question
ABC Inc. borrows $50,000 from a bank to finance its operations. Which of the following statements regarding the effect of this transaction on the company's
ABC Inc. borrows $50,000 from a bank to finance its operations. Which of the following statements regarding the effect of this transaction on the company's liquidity and profitability metric is true?
a.The transaction has no effect on the liquidity and profitability of ABC Inc.
b.The transaction increases the liquidity and has no effect on the profitability of ABC Inc.
c.The transaction increases the liquidity and decreases the profitability of ABC Inc.
d.The transaction decreases the liquidity and increases the profitability of ABC Inc.
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The Security Risk Handbook Assess Survey Audit
Authors: Charles Swanson
1st Edition
1032030356, 978-1032030357
