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The following information is taken from the balance sheet of Menendez Company on January 1,2016:

-Use the information on January 1,2016 to determine the effect of the following entry on the current ratio of Menendez Company:
This transaction will
A)have no effect on the current ratio.
B)cause the current ratio to increase.
C)cause the current ratio to decrease.
D)potentially affect the current ratio,but the direction of the change cannot be determined without more information.

Question

Use the following to answer questions 
The following information is taken from the balance sheet of Menendez Company on January 1,2016:
 
-Use the information on January 1,2016 to determine the effect of the following entry on the current ratio of Menendez Company:
This transaction will 
A)have no effect on the current ratio. 
B)cause the current ratio to increase. 
C)cause the current ratio to decrease. 
D)potentially affect the current ratio,but the direction of the change cannot be determined without more information.

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The Answer of Use the following to answer questions 
The following information is taken from the balance sheet of Menendez Company on January 1,2016:
 
-Use the information on January 1,2016 to determine the effect of the following entry on the current ratio of Menendez Company:
This transaction will 
A)have no effect on the current ratio. 
B)cause the current ratio to increase. 
C)cause the current ratio to decrease. 
D)potentially affect the current ratio,but the direction of the change cannot be determined without more information.

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