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

question 90

Multiple Choice

A firm has $600,000 in current assets and $150,000 in current liabilities.Which of the following is correct if it uses 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:

Report View

A feature in database and application software that allows users to view, and sometimes interact with, the data in a report format.

Print Preview

A feature that allows users to view a document or page exactly how it will appear when printed, often used to make adjustments before final printing.

Report Layout View

A view in database software that enables users to design or modify how reports based on the data will be visually laid out and printed.

Form View

A way of displaying or editing data within a database application, where data fields are formatted in a form-like layout for easier viewing and data entry.