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.

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Definitions:

General Occupational Themes

General occupational themes are broad categories that describe work-related interests and preferences, often used in career counseling to help individuals identify suitable career paths.

Occupational Scales

Occupational scales are tools used to measure individuals' interests, skills, and aptitudes in relation to various professions or occupations, often used in career counseling and planning.

Occupations Finder

A classification system that includes 1,300 common occupations in the United States which is used to generate a list of occupations and educational requirements based on the Holland three-letter code.

Career Counseling

A guidance process that helps individuals understand their own abilities, interests, and values to make career decisions.