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Mother's Company Has Current Assets of $900,000 and Current Liabilities

Question 129

Multiple Choice

Mother's Company has current assets of $900,000 and current liabilities of $1,000,000.Mother's Company's current ratio would be increased by


A) borrowing $100,000 on a line-of-credit (short-term loan) .
B) purchase of merchandise inventory costing $100,000 cash.
C) purchase of marketable equity securities for $100,000 cash.
D) paying $100,000 of wages payable.
E) none of the above.

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