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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 purchases a new piece of equipment the company issues new common stock the company repurchases common stock the company pays a dividend the company gives customers more time to pay their bills (hint: the balance of accounts receivables increases)



Answer :

The company issues new common stock is correct,

What is the balance sheet?

A balance sheet is a financial statement that lists the assets and liabilities of a business at a certain point in time. One of the three essential financial statements, along with the income statement and cash flow statement, which are used to assess a company's performance.

  • New equipment purchases, stock repurchases, and dividend payments all result in cash outlays, which lower the cash balance. Contrarily,
  • the amount of time granted to clients to pay their bills lags behind their receipt of cash; as a result, the amount of cash actually decreases rather than increases.

Therefore, the issuance of common stock increases the organization's cash balance while keeping all other aspects of the balance sheet same. Therefore, "b" is the appropriate choice.

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