A Company with $70,000 in Current Assets and $50,000 in Current

question 113

Multiple Choice

A company with $70,000 in current assets and $50,000 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

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Definitions:

Need;Drive

Fundamental psychological or physiological requirements that motivate behavior to fulfill a necessity or achieve a goal.

Evolutionary Psychology

A perspective in the social and natural sciences that focuses on understanding psychological structures through the prism of modern evolutionary insights.

Survival Value

The significance of behaviors in increasing an organism's chance of survival and reproduction.

Helping Behaviors

Refers to actions taken to benefit another person or group without expecting anything in return.