Question: How many of the following transactions decrease a companys liquidity? a. Pay workers salaries in the current period b. Provide services on account c. Purchase

How many of the following transactions decrease a companys liquidity? a. Pay workers salaries in the current period b. Provide services on account c. Purchase equipment with cash d. Pay dividends to stockholders:

a. 1 b. 2 c. 3 d. 4 e. 0

PLEASE EXPLAIN WHY THE ANSWER IS C AND GO THROUGH STEP BY STEP OF EACH TRANSACTION TELLING WHY THEY ARE OR WHY THEY ARE NOT DECREASING A COMPANY'S LIQUIDITY. I'M TRYING TO UNDERSTAND THE CONCEPT OF LIQUIDITY AND RELATION TO LIABILITIES AND ASSETS. THANK YOU.

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