Given that Carlson Corp.'s current ratio is 3 to 2, what is the effect of obtaining a patent from the inventor in exchange for shares of stock in Carlson Corp.?
A) The current ratio would increase.
B) The current ratio would decrease.
C) The current ratio would remain the same.
D) Unable to determine.

Question

Quizplus · Accepted Answer

Obtaining a patent in exchange for shares of stock affects non-current assets and equity, not current assets or current liabilities. Therefore, the current ratio, which compares current assets to current liabilities, would remain unchanged.

Given That Carlson Corp