if a farm businesss working capital has increased over an accounting period, the farm businesss current…

if a farm businesss working capital has increased over an accounting period, the farm businesss current ratio will have ____________ over the same accounting period. 1 point increased decreased increased or decreased (more information is needed) skip for now submit answer

if a farm businesss working capital has increased over an accounting period, the farm businesss current ratio will have ____________ over the same accounting period. 1 point increased decreased increased or decreased (more information is needed) skip for now submit answer

Answer

Brief Explanations:

Working - capital is current assets minus current liabilities. Current ratio is current assets divided by current liabilities. An increase in working - capital can occur in different ways. For example, current assets could increase while current liabilities stay the same (increasing the current ratio), or current liabilities could decrease while current assets stay the same (also increasing the current ratio). But if current assets increase by a smaller proportion than the increase in current liabilities, the current ratio could decrease. So, more information about the changes in current assets and current liabilities is needed to determine the change in the current ratio.

Answer:

C. Increased or decreased (more information is needed)