If a firm needs to increase its cash holdings it could:
A)increase fixed assets.
B)decrease accounts payable.
C)decrease long-term debt.
D)increase other current assets.
E)increase current liabilities.

Question

Quizplus · Accepted Answer

Increasing current liabilities, such as taking on more short-term debt or accounts payable, directly increases cash holdings because it represents additional funds coming into the firm without an immediate cash outlay.

If a Firm Needs to Increase Its Cash Holdings It