Ed's Drive-In Had $175,000 of Current Assets and $80,000 of Current

question 26

Multiple Choice

Ed's Drive-In had $175,000 of current assets and $80,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on Ed's Drive-In's current ratio?

• A)The ratio remained unchanged.
• B)The change in the current ratio cannot be determined.
• C)The ratio decreased.
• D)The ratio increased.

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Definitions:

Cultural Intelligence

The ability to relate and work effectively across cultures, understanding and respecting cultural differences.

Polycentric Attitude

An approach in international business that emphasizes adapting to and integrating with the host country's culture and business practices.

Collaborative Approach

A working method that involves joint effort and partnership among team members or organizations to accomplish a common goal.

International Business

encompasses all commercial transactions, both governmental and private, between parties of different countries, involving exports, imports, and foreign direct investment.