Now We See You Security Corporation had $ 250,000 of current assets and $ 90,000 of current liabilities before borrowing $ 60,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on Now We See You Security's current ratio?
A) The ratio remained unchanged.
B) The change in the current ratio cannot be determined.
C) The ratio decreased.
D) The ratio increased.

Question

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The Answer of Now We See You Security Corporation had $ 250,000 of current assets and $ 90,000 of current liabilities before borrowing $ 60,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on Now We See You Security's current ratio?
A) The ratio remained unchanged.
B) The change in the current ratio cannot be determined.
C) The ratio decreased.
D) The ratio increased.

Now We See You Security Corporation Had $ 250,000 of Current