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If the company purchased a $60,000 piece of equipment by paying $30,000 and having the rest financed with a short-term note from the bank, then
If the company purchased a $60,000 piece of equipment by paying $30,000 and having the rest financed with a short-term note from the bank, then immediately after this transaction what is the expected impact on the components of the current ratio?
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Current assets decrease and current liabilities increase by the same amount.
Current liabilities decrease.
Current assets and current liabilities decrease by the same amount.
Current assets increase.
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