Christy Would Like to Improve the Current Ratio of Her

question 87

Multiple Choice

Christy would like to improve the current ratio of her firm, which is now 0.5, so that she will have a better chance of obtaining a working capital loan. Which of the following options would improve her current ratio?

• A) use cash to pay off notes payable
• B) collect some of her accounts receivables
• C) purchase additional inventory on credit
• D) borrow short-term funds to pay off some payables

---

Definitions:

Therapeutic Alliance

The cooperative and collaborative relationship between a client and therapist, considered critical for effective therapy.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing unconditional positive regard and self-actualization.

Empathy

The ability to understand and share the feelings of another person.

Countertransference

The emotional reactions of the therapist towards the patient's own background and issues, that can affect the therapeutic relationship and process.