If a Company Converted a Short-Term Note Payable into a Long-Term

question 81

Multiple Choice

If a company converted a short-term note payable into a long-term note payable, this transaction would:

• A)increase only working capital.
• B)decrease only working capital.
• C)have no effect on either the current ratio or net working capital.
• D)increase both working capital and the current ratio.
• E)decrease both working capital and the current ratio.

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Definitions:

Mental Age

A measure of an individual's mental ability expressed as the age at which an average individual reaches the same level of performance.

Charles Spearman

A psychologist known for his pioneering work in statistics and intelligence, specifically for his development of factor analysis and the concept of a general intelligence factor, "g".

Intelligence

The ability to acquire, understand, and apply knowledge and skills, and to adapt to new situations.

Stanford-Binet

An individually administered intelligence test that was revised from the original Binet-Simon Scale, measuring five factors of cognitive ability.