Liquidity is a company's ability to convert assets to cash or acquire cashthrough a loan...
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Finance
Liquidity is a company's ability to convert assets to cash or acquire cashthrough a loan or money in the bankto pay its short-term obligations or liabilities. Which one of these transactions will increase the liquidity of a firm?
1. Cash payment of employee wages
2. Credit sale of inventory at cost
3. Payment of accounts payable
4. Cash purchase of inventory
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