A Company with $75,000 in Current Assets,$37,500 in Quick Assets,and

question 159

Multiple Choice

A company with $75,000 in current assets,$37,500 in quick assets,and $45,000 in current liabilities makes a payment of a $3,000 oncurrent debt.As a result of this transaction,the current ratio and quick ratio will

• A)both decrease.
• B)increase and decrease,respectively.
• C)both increase.
• D)remain the same and decrease,respectively.

---

Definitions:

Henry Paulson

A former American banker who served as the Secretary of the Treasury during the critical period of the financial crisis in 2007-2008.

Great Recession

A severe global economic downturn that occurred from late 2007 through mid-2009, marked by significant declines in economic activity and employment.

Retirement

The process of leaving one's job and ceasing to work, typically upon reaching a certain age, often accompanied by receiving pension benefits.

Private Pensions

Retirement plans funded and managed by private sector employers, unions, or organizations, as opposed to government-run social security schemes.