Question

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet? Group of answer choices The company issues new common stock. The company gives customers more time to pay their bills. The company purchases a new piece of equipment. The company repurchases common stock. The company pays a dividend.

Answer 1

Answer:

The company issues new common stock.

Explanation:

As we know that the cash balance have the debit balance so if there is increase in cash balance so the balance would remain in debit itself

In the given choices, the company issues common stock which increases the cash balance and the journal entry is as follows

Cash Dr XXXXX

      To Common stock XXXXX

(Being the common stock is issued for cash)

And, the rest transactions shows the outflow of cash