Wu Limited Had $350,000 of Current Assets and $120,000 of Current

question 55

Multiple Choice

Wu Limited had $350,000 of current assets and $120,000 of current liabilities before borrowing $60,000 from the bank with a 6-month note payable.What effect did the borrowing transaction have on Wu
Limited's current ratio?

• A)The ratio remained unchanged.
• B)The ratio decreased.
• C)The ratio increased.
• D)The change in the current ratio cannot be determined.

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Definitions:

Major Dimensions

Major Dimensions typically refer to the primary or most significant aspects or components of a concept, theory, or object that define its structure or nature.

Cultures Differ

The recognition that there are significant variations in customs, values, norms, and social practices among societies and groups, influencing behavior and interactions.

Leadership Process

The continuous and dynamic series of actions and interactions in influencing others towards achieving common goals.

Culture Influence

The impact that the shared values, norms, and practices of a group have on the behaviors and attitudes of individuals within that group.