Question
Executive Consulting Ltd, a management consulting firm based in London, creates their financial statements for the year. Transaction 1: Executive Consulting Ltd records a cash
Executive Consulting Ltd, a management consulting firm based in London, creates their financial statements for the year.
Transaction 1: Executive Consulting Ltd records a cash payment of the current portion of the long term debt.
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A Total Current Assets - Increase, Net Income - Decrease
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B Total Current Assets - Decrease, Net Income - Decrease
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C Total Current Assets - Decrease, Net Income - No Change
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D Total Current Assets - No change, Net Income - Decrease
Transaction 2: Executive Consulting Ltd purchases land and pays half of the amount in cash, the remaining amount will be paid in 3 months.
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A Total Current Assets - Increase, Net Income - Decrease
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B Total Current Assets - Increase, Net Income - No change
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C Total Current Assets - Decrease, Net Income - No Change
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D Total Current Assets - No change, Net Income - Decrease
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