Swanson Company Had $250,000 of Current Assets and $90,000 of Current

question 46

Multiple Choice

Swanson Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on Swanson Company's current ratio?

• A) The ratio remained unchanged.
• B) The change in the current ratio cannot be determined.
• C) The ratio decreased.
• D) The ratio increased.

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Definitions:

Directive Style

A leadership or communication approach where clear, explicit instructions are given, often with the expectation of compliance.

Charisma

A compelling attractiveness or charm that can inspire devotion in others, often seen in leaders who possess a strong, magnetic personality.

Strengths-Based Leadership

A leadership approach that focuses on identifying and maximizing the strengths of team members rather than concentrating on their weaknesses.

Simulation

the act of imitating or recreating specific conditions for the purpose of training, analysis, or prediction.