A Company with Working Capital of $500,000 and a Current

question 50

Multiple Choice

A company with working capital of $500,000 and a current ratio of 2.25 pays a $100,000 short-term liability. The amount of working capital immediately after payment is:

• A) $600,000.
• B) $400,000.
• C) $500,000.
• D) $100,000.

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Definitions:

Alcohol Abuse

A pattern of drinking that results in harm to one's health, interpersonal relationships, or ability to work.

Liver Disease

A broad category of conditions, disorders, and infections that affect the liver's ability to function properly.

Sexually Transmitted Diseases

Diseases that are primarily spread through sexual contact, involving infections such as HIV, chlamydia, and gonorrhea.

Car Accidents

Incidents involving motor vehicles that result in damage to the vehicles and/or injury to the people involved.