A Firm Has $600,000 in Current Assets and $150,000 in Current

question 116

Multiple Choice

A firm has $600,000 in current assets and $150,000 in current liabilities.Which of the following is correct if they use cash to pay off $50,000 in accounts payable?

• A)Current ratio will increase to 5.0.
• B)Net working capital will increase to $500,000
• C)Current ratio will decrease
• D)Net working capital will not change

---

Definitions:

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another target neuron, muscle cell, or gland cell.

Anandamide

An endocannabinoid, naturally produced in the body, that binds to cannabinoid receptors and affects mood, appetite, and pain sensation.

Dopamine

A neurotransmitter in the brain associated with pleasure, movement, and the reward system.

Serotonin

A neurotransmitter involved in regulating mood, appetite, and sleep, among other functions.