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:

Somatic Nervous System

A part of the peripheral nervous system associated with the voluntary control of body movements via skeletal muscles.

Neural Networks

Computational models designed to simulate the structure and function of neural connections in the human brain, used in artificial intelligence for pattern recognition, decision-making, and learning.

Endocrine Glands

Organs that secrete hormones directly into the bloodstream to regulate various body functions, including growth, metabolism, and mood.

Acetylcholine Antagonists

Acetylcholine antagonists are substances or drugs that inhibit the action of acetylcholine, a neurotransmitter involved in various functions including muscle movement and memory.