Nord Company Had $375000 of Current Assets and $150000 of Current

question 217

Multiple Choice

Nord Company had $375000 of current assets and $150000 of current liabilities before borrowing $70000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of Nord Company's working capital?

• A) No effect
• B) $70000 increase
• C) $140000 increase
• D) $70000 decrease

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Definitions:

Cognitive Differentiation

The ability to distinguish between different concepts, ideas, or objects, reflecting a level of cognitive complexity and mental flexibility.

Source Characteristics

Traits or attributes of the communicator or source of information that influence the persuasiveness and effectiveness of a communication message.

Credibility

The quality of being trusted and believed in, often assessed in the context of sources of information or individuals.

Attractiveness

A quality that makes something or someone pleasing or appealing to the senses, particularly in appearance or manner.