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If a firm increases its cash balance by issuing additional shares of common stock, working capital:
A. Increases and the current ratio increases.
B. Increases and the current ratio decreases.
C. Remains unchanged and the current ratio remains unchanged.
D. Increases and the current ratio remains unchanged.
Answer: A
Explanation:
Choice "d" is correct. If a firm increases its cash balance by issuing additional shares of common stock,
working capital increases and the current ratio increases.
NEW QUESTION: 2
Sie vergleichen die ACDOCA- und BSEG-Tabellen und stellen fest, dass einige FL-Dokumente NICHT in der BSEG-Tabelle gespeichert sind. Welche der folgenden Finanzbuchhaltungstransaktionen erstellt Einträge nur in der ACDOCA-Tabelle?
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______________.
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