A company purchases raw materials for $85,000 on open account will (? ( the ratio before was greater than 1

Right answer is ( B ) Decrease the current ratio because curent liabilties increase due to increase in current liability current ratio is decrease.

No effect................................ Liability and asset  will be same as before

No affecting on net capital work

B) decrease in current ratio>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

There current ratio will decrease and working capital will remain constant 

the answer is ( A )  increasing the current ratio

decrease net working capital

will decrease the current ratio both current liabilities and current assets will increase by the same amount which is85000 but because the ratio is greater than1 current liabilities will increase by a greater percentage and so the ratio will drease

INCREASE NET WORKING CAPTIAL

Answer is  B (Decrease the current ratio)

All answer are False 

the current Ratio and Working capital will be constant due to the equal increase in current asset ans current liabilities

Thanks