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:

Electroconvulsive Therapy (ECT)

A medical treatment primarily used for severe depression which involves inducing seizures in patients through electrical currents.

Depression

A mental syndrome characterized by a perpetual feeling of unhappiness or a lack of interest in tasks, causing substantial interference in day-to-day chores.

Mindfulness

The practice of being aware and present in the moment without judgment.

Eclectic Approach

A method in psychotherapy that combines techniques and theories from various schools of psychological thought.