A Company with $60,000 in Current Assets and $35,000 in Current

question 271

Multiple Choice

A company with $60,000 in current assets and $35,000 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:

SATM Scores

Scores from the math section of the SAT, a standardized test widely used for college admissions in the United States.

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Regression Model

A statistical approach for modeling the relationship between a dependent variable and one or more independent variables.