A Company with $60,000 in Current Assets and $40,000 in Current

question 122

Multiple Choice

A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.As a result of this transaction, the current ratio and working capital will

• A)both decrease.
• B)both increase.
• C)increase and remain the same, respectively.
• D)remain the same and decrease, respectively.

---

Definitions:

Elicit Caretaking

The act or behavior of invoking or receiving care and attention from others.

Basis of Language Development

Fundamental aspects and mechanisms underlying the acquisition and evolution of language skills in individuals.

Cry

A vocal expression of emotions such as sadness, frustration, or happiness, often involving tears.

Stranger Anxiety

A form of distress that young children experience when exposed to people unknown to them, typically emerging around 6 to 9 months of age.