Beta Limited Had a Current Ratio of 0

question 155

Multiple Choice

Beta Limited had a current ratio of 0.8:1 before borrowing $50,000 from the bank with a 3-month note payable. What effect did the borrowing transaction have on Beta's current ratio?

• A) The ratio remained unchanged.
• B) The ratio decreased.
• C) The ratio increased.
• D) Cannot be determined.

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Definitions:

Mask

A covering for the face or part of the face, used for protection, disguise, performance, or entertainment.

Appearance-Reality Tasks

Appearance-reality tasks are tests used in developmental psychology to assess a child's ability to distinguish between what something appears to be and what it really is.

Reasoning

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Verbal Responses

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