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 $8,000.
How will this transaction affect the current ratio?
A) It will decrease the current ratio to 1:1.
B) It will increase the current ratio to 3:1.
C) It will increase the current ratio to 5:1.
D) It will have no effect on the current ratio.
Correct Answer:
Verified
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