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​JNC Co.buys Equipment for $1,500,000 Cash.This Transaction

Question 43

Multiple Choice

​JNC Co.buys equipment for $1,500,000 cash.This transaction:


A) ​decreases JNC Co.'s liquidity and has no effect on its profitability metric.
B) ​has no effect on JNC Co.'s liquidity and profitability.
C) ​increases JNC Co.'s liquidity and profitability.
D) ​has no effect on JNC Co.'s liquidity and decreases its profitability.

Correct Answer:

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