Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet?
在其它条件不变的情况下，以下哪项行动会增加公司资产负债表上的现金？

Question

BlackTom AI · Accepted Answer

The question asks which action, holding other factors constant, would raise the cash shown on the balance sheet.
Option 1: The company repurchases common stock. In a buyback, the company spends cash to buy its own shares, so cash on the balance sheet decreases rather than increases. This option would not raise cash.
Option 2: The company pays a dividend. Paying a dividend uses cash to transfer value to shareholders, reducing cash reserves. Therefore, this action would not increase cash.
Option 3: The company issues new common stock. When a company issues stock and receives cash from investors, cash increases. This is a source of additional cash and directly boosts the cash balance on the balance sheet.
Option 4: The company gives customers more time to pay their bills. Extending credit to customers delays cash collection and may increase accounts receivable; it does not in itself increase cash on hand now. In some scenarios it could affect timing, but the immediate cash position typically does not rise.
Option 5: The company purchases a new piece of equipment. Purchasing equipment uses cash, so cash on the balance sheet decreases rather than increases.
In summary, only issuing new common stock (Option 3) directly increases cash on the balance sheet when the proceeds are received.

Other things held constant, which of the following actions would increase the amount of cash on a company's balance sheet? 在其它条件不变的情况下，以下哪项行动会增加公司资产负债表上的现金？

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