32 The following information is taken from the balance sheet of Menendez Company on January 1, Year 1: Current Assets Equipment Land Total Assets On January 2, Year 1, the company earned revenue on account of $4,000. $ 26,000 Current Liabilities $ 12,000 46,000 Long-term Liabilities 36,000 38,000 Common Stock 62,000 $110,000 Total Liab. & Equity $110,000 How will this transaction affect the current ratio? Multiple Choice O It will decrease the current ratio to 1:1. It will increase the current ratio to 2.5:1.

The following information is taken from the balance sheet of Menendez Company on January 1, Year 1: On January 2, Year 1, the company earned revenue on account of $4,000. How will this transaction affect the current ratio? Multiple Choice It will decrease the current ratio to 1:1. It will increase the current ratio to 2.5:1