Use the Following Information for Questions

question 53

Multiple Choice

Use the following information for questions
Sweeney Corporation had $250,000 in current assets and $90,000 in current liabilities before borrowing $50,000 from the bank for a 3-month period.
-What effect did the borrowing transaction have on Sweeney's current ratio?

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

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