Given that the current ratio is 2:1 and the assets and liabilities are $20,000 and 510,000 respectively. Now If an amount of $20,000 is added to assets and liabilities equally, which one is correct below? Oa. No Change in Current Ratio b.Increase in the current ratio C. Decrease in current ratio d. The current ratio will double.

Given that the current ratio is 2:1 and the assets and liabilities are $20,000 and 510,000 respectively. Now If an amount of $20,000 is added to assets and liabilities equally, which one is correct below? Oa. No Change in Current Ratio b.Increase in the current ratio C. Decrease in current ratio d. The current ratio will double.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 15MC: If current assets are $112,000 and current liabilities are $56,000, what is the current ratio? A....

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