A Company with $60,000 in Current Assets and $40,000 in Current

question 31

Multiple Choice

A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.As a result of this transaction,the current ratio and working capital will

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

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Definitions:

Consequentialist Thought

Ethical philosophy considering the consequences of actions as the primary basis for any judgment about the rightness or wrongness of those actions.

Utilitarian Thought

A philosophical belief that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

A Theory of Justice

This is a seminal work by philosopher John Rawls, proposing principles of justice that would lead to a fair and equitable society.

Basic Structure

The fundamental organization or framework of a system, theory, or concept.