If a Company Purchased a $60,000 Piece of Equipment by Paying

Multiple Choice

If a company purchased a $60,000 piece of equipment by paying $30,000 and having the rest financed with a short-term note from the bank. Immediately after this transaction what is the expected impact on the components of the current ratio?

A) Current assets decrease and current liabilities increase by the same amount.
B) Current liabilities decrease.
C) Current assets and current liabilities decrease by the same amount.
D) Current assets increase.