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)The effect of the current ratio cannot be determined.

Question

Quizplus · Accepted Answer

Obtaining a patent from an inventor in exchange for shares of stock would not affect the current ratio, as it is a measure of a company's liquidity and ability to pay its short-term liabilities with its current assets. The exchange of shares of stock for the patent would not affect the current assets or current liabilities of Carlson Corp.

Given That Carlson Corp