Barney co.'s current ratio is 2:1. Which of the following transactions would normally increase Barneys's current ratio?
A. purchasing inventory on account
B. borrowing money by signing a long-term note
C. collecting an account receivable
D. purchasing land for cash

What do YOU think the answer is? And WHY?

B- taking a long-term loan would increase the current ratio. Since the loan is a long term liability it is not calculated into the current ratio, however the newly received cash amount is.