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.

Identify the signs and stages of normal and atypical development in children.

Understand the methods and importance of studying infant memory and cognition.

Recognize the impact of genetic and environmental factors on cognitive development and disorders.

Understand the role of executive functions in cognitive development and behavioral control.

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Definitions:

Output Effect

The output effect refers to the impact changes in production volume have on a company's total costs and profitability.

Substitute Resource

A resource that can be used in place of another in production processes, often influencing supply and price levels.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Law of Diminishing Returns

An economic principle stating that as one input in the production process is incrementally increased, holding all other inputs constant, there will be a point at which the added output from each additional unit of input will start to decrease.