Which of the following transactions will not increase the cash ratio?

A) Receiving cash from a common stock issue.
B) Refinancing a current liability with long-term debt.
C) Using cash to purchase a two-month treasury bill.
D) Collecting an account receivable.

The cash ratio is calculated by dividing cash and cash equivalents by current liabilities. Purchasing a treasury bill with cash would decrease the amount of cash available, but current liabilities would not be affected. Therefore, the cash ratio would decrease. Receiving cash from a common stock issue and collecting an account receivable increase the amount of cash available, which would increase the cash ratio. Refinancing a current liability with long-term debt does not affect the amount of cash or current liabilities, so it would have no effect on the cash ratio.