Acct 105 week 5 quiz

uestion 1 of 10 Paid short-term portion of notes payable, $60,000. What is the effect on working capital, the current ratio, and the acid-test ratio? Assume the current ratio is 1:1 before this transaction occurred. A. Decreases working capital, current ratio, and acid-test ratios. B. Increases working capital, no effect on current and acid-test ratios. C. Increases working capital, decreases current and acid-test ratios. OD. No effect on all three items. E. No effect on working capital, increases current ratio and acid-test ratio