If a Company Converted a Short-Term Note Payable into a Long-Term

Multiple Choice

If a company converted a short-term note payable into a long-term note payable, this transaction would:

A) increase only working capital.
B) decrease only working capital.
C) have no effect on either the current ratio or net working capital.
D) increase both working capital and the current ratio.
E) decrease both working capital and the current ratio.