Use the Information on January 1, 2013 to Determine the Effect

Multiple Choice

Use the information on January 1, 2013 to determine the effect of the following entry on the current ratio of Minerva Company: This transaction will

A) have no effect on the current ratio.
B) cause the current ratio to decrease.
C) cause the current ratio to increase.
D) potentially affect the current ratio, but the direction of the change cannot be determined without more information.