How Will a Company's Current Ratio Be Affected When the Company

Multiple Choice

How will a company's current ratio be affected when the company receives $20,000 from owners and issues common stock to them?

A) The current ratio will increase because current assets increase.
B) The current ratio will increase because current liabilities decrease.
C) There will be no change in the company's current ratio.
D) The current ratio will decrease because current liabilities increase.