If a Company Converts a Short-Termnote Payable into a Long-Term

question 188

Multiple Choice

If a company converts a short-termnote payable into a long-term note payable,what would be the effect of this transaction?

• A) A decrease in working capital and an increase in the current ratio.
• B) A decrease in both working capital and the current ratio.
• C) A decrease in both the current ratio and the acid-test ratio.
• D) An increase in both working capital and the current ratio.

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Definitions:

Self-Reliant

Having confidence in and exercising one's own powers or judgment; capable of thinking or acting independently.

Insecurely Attached

A term from attachment theory indicating a lack of a secure emotional bond between a child and their caregiver, often leading to difficulties in relationships.

Egocentric

Relating to the inability to differentiate between one's own perspective and someone else's perspective, common in early childhood development.

Parenting Style

The manner in which a parent or caregiver raises and guides their child, often categorized into types such as authoritarian, authoritative, permissive, and uninvolved.