Multiple Choice Questions on A firm that issues stocks and bonds to raise funds results in ........ for UPSC EPFO Exam Preparation

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Multiple Choice Questions

A firm that issues stocks and bonds to raise funds results in ........

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bonds are loans; increased liability

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every transaction has at least 2 effects, Issue of stock will increase cash & equity. issue of bonds increase cash & liability, answer will be increase in cash

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I think, this answer is superfluous. If funds are mentioned in question, then only thing determined was to ascertain the effect of these funds. The liabilities will increase. Issuing bonds and stocks increases liability

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issue of stock will increase Cash & Equity, Issue of bonds increase Cash & Liability hence increase in cash is correct option

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