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

Question 44

Multiple Choice

A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability. Because of this transaction, the current ratio and working capital will


A) both decrease.
B) both increase.
C) remain the same and decrease, respectively.
D) increase and remain the same, respectively.

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