37. A company with S60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will A) remain the same and decrease, respectively. B) both decrease. 9 increase and remain the same, respectively. D) both increase.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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37. A company with $60,000 in current assets and $35.000 in current liabilities pays a $1,000 current liability. As a result of this
transaction, the current ratio and working capital will
A) remain the same and decrease, respectively.
B) both decrease.
) increase and remain the same, respectively.
D) both increase.
Transcribed Image Text:37. A company with $60,000 in current assets and $35.000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will A) remain the same and decrease, respectively. B) both decrease. ) increase and remain the same, respectively. D) both increase.
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