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

question 74

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:

Grammatical Rules

A set of guidelines in a language that dictate how words and phrases should be arranged to convey clear meaning.

Pathological Societies

Societies characterized by pervasive social problems and dysfunctions that impede collective welfare and individual well-being.

Labor

Human effort, either physical or mental, applied in the production of goods and services.

Repressive Law

A type of law in traditional societies, as described by Durkheim, that focuses on punishing offenders to maintain collective order rather than rehabilitating them.