A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.

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Question:

As a result of this transaction, the current ratio and working capital will

a. decrease.

b. both increases.

c. increase and remain the same, respectively.

d. remain the same and decrease, respectively

Related Book For answer-question

Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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Posted Date: Jun 15, 2022 06:14 AM

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A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.

Question:

Expert Answer:

60000 Existing current ratio 15 40000 Existing working cap... View the full answer

Advanced Accounting

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