A company's current assets are $150 and its current liabilities are $100. If the company uses cash

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A company's current assets are $150 and its’ current liabilities are $100. If the company uses cash to retire notes payable due within one year, would this transaction increase or decrease the current ratio and return on assets ratio?

A) Current Ratio: Increase; Return on Assets: Increase

B) Current Ratio: Increase; Return on Assets: Decrease

C) Current Ratio: Decrease; Return on Assets: Increase

D) Current Ratio: Decrease; Return on Assets: Decrease

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Investments

ISBN: 978-0071338875

8th Canadian Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

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Question Posted: Jan 09, 2013 03:55 AM

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A company's current assets are $150 and its current liabilities are $100. If the company uses cash

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Investments

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