The following information concerning the current assets and current liabilities of
Mason Company at December 31, 2010, is presented below.
Based on this information, how would the current ratio be affected if Mason collects the accounts receivable and then uses some of the cash to pay off the accounts payable?
a. The current ratio would increase from 1.30 to 1.93.
b. The current ratio would increase from 0.74 to 4.02.
c. The current ratio would decrease from 1.30 to 0.62.
d. The current ratio would increase from 1.09 to 1.61.
Definitions:
German Piano Manufacturer
A company based in Germany specializing in the creation and production of pianos.
Joint Venture
A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.
Repatriation
The process of returning a person to their country of origin or citizenship, often used in the context of employees returning home after international assignments.
Foreign Assignments
Work tasks or roles allocated to employees in a location outside of their home country, typically as part of international business operations.
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