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

question 32

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) increase and remain the same, respectively.
• D) remain the same and decrease, respectively.

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Definitions:

Particular Way

A specific manner or method of doing something.

Personality Theorists

Researchers who study patterns of thoughts, feelings, and behavior that make a person unique.

Individual Differences

Variations among individuals in their psychological traits, such as abilities, motivations, and personality characteristics.

Consistency

Refers to the uniformity or stability in behaviour, thoughts, or emotions over time and across situations.