A Company with Working Capital of $600,000 and a Current

question 12

Multiple Choice

A company with working capital of $600,000 and a current ratio of 3.25 pays a $200,000 short-term liability.The amount of working capital immediately after payment is:

• A)$400,000.
• B)$600,000.
• C)$800,000.
• D)$200,000.

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Definitions:

Plate Boundary

The edges where two tectonic plates meet, which can be categorized into convergent, divergent, or transform boundaries based on their movement relative to each other.

Spreading Center

Divergent boundary where two oceanic plates move apart (diverge).

Transform Fault

A geological fault where the movement of the Earth's crust is predominantly horizontal, often leading to earthquakes in these regions.

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, often associated with volcanic activity and earthquakes.