A company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on the amount of the company’s current ratio?
| Click Here to View All Chapter 4 Problems at Once | View | ||
| 1 | Closing Journal Accounts | Easy | |
| 2 | Current Assets | Easy | |
| 3 |
Effect on the Current Ratio
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Easy | |
| 4 | Closing Process | Moderate | |
| 5 | Solving for Missing Amounts | Moderate | |
| 6 | Account Classifications | Hard | |
| 7 | Year End Closing & Account Classification | Hard |
| 1 | The Closing Process | 10:37 | |
| 2 | The Classified Balance Sheet | 4:48 | |
| 3 | Current Assets | 9:57 | |
| 4 | Non-Current Assets | 10:25 | |
| 5 | Current Liabilities | 6:24 | |
| 6 | Non-Current Liabilites | 2:00 | |
| 7 | Contributed Capital | 5:10 | |
| 8 | Ratios: Current Ratio | 4:00 |