Given that Curtain 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 Curtain 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

The transaction involves exchanging shares of stock for a patent, which affects non-current assets and equity but does not impact current assets or current liabilities, leaving the current ratio unchanged.

Given That Curtain Corp