BSO, Inc. has current assets of $ 1,000,000 and current liabilities of $ 500,000, resulting in a

Question:

BSO, Inc. has current assets of $ 1,000,000 and current liabilities of $ 500,000, resulting in a cur-rent ratio of 2.0. For each of the following transactions, determine whether the current ratio will increase, decrease, or remain the same. Consider each item, (a)-(d), independent of the others.
a. Purchased $ 20,000 of supplies on credit.
b. Paid in the amount of $ 50,000.
c. Recorded $ 100,000 of cash contributed by a stockholder for common stock.
d. Borrowed $ 250,000 from a local bank, to be repaid in 90 days. Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...