A Company with Working Capital of $720,000 and a Current

question 64

Multiple Choice

A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is

• A) $845,000
• B) $595,000
• C) $720,000
• D) $125,000

Distinguish between expenses and prepaid expenses.

Comprehend the structure and components of an account.

Familiarize with the concept and implications of Unearned Revenues and Dividends in accounting.

Discern the process for determining the balance of an account and the impact of transactions on account balances.

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Definitions:

Testosterone

A steroid hormone that stimulates development of male secondary sexual characteristics, produced mainly in the testes.

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production in mammals after childbirth.

Dopamine

A neurotransmitter in the brain that plays a key role in controlling the brain's reward and pleasure centers as well as regulating movement and emotional responses.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, regulating mood, appetite, and sleep.