Perhaps D Should Read: Current Assets Increase as D Is

question 73

Multiple Choice

Perhaps D should read: Current assets increase as D is correct as written. Done.JMF
If the company purchased a $60,000 piece of equipment by paying $30,000 and having the rest financed with a short-term note from the bank,then immediately after this transaction what is the expected impact on the components of the current ratio?

• A) Current assets decrease and current liabilities increase by the same amount.
• B) Current liabilities decrease.
• C) Current assets and current liabilities decrease by the same amount.
• D) Current assets increase.
• Since we don't know the current ratio before this transaction,I don't think the correct answer should include the wording I have deleted.I changed all four answers.The feedback matches this approach.
• Perhaps D should read: Current assets increase as D is correct as written.
• Done.JMF
• Since we don't know the current ratio before this transaction,I don't think the correct answer should include the wording I have deleted.I changed all four answers.The feedback matches this approach.

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Definitions:

Apical Impulse

The point of maximal impulse on the chest wall, indicating the position of the heart; often felt during cardiac examination.

Intercostal Space

The anatomical area between two ribs, through which nerves and blood vessels pass.

Midclavicular Line

An imaginary vertical line running down from the midpoint of the clavicle in the human body, often used as a reference in medical examinations.

Jugular Venous Pulsations

Observable pulsations of the jugular vein in the neck, used clinically to assess central venous pressure and heart function.