Use the Following Information to Answer Questions

question 55

Multiple Choice

Use the following information to answer questions
Green Thumb Garden Supplies reported the following information for 2021 and 2022.

-What is the current ratio for 2022?

• A)2.0:1
• B)1.7:1
• C)1.6:1
• D)0.6:1

---

Definitions:

Doctrine of Marshaling Assets

A principle in equity that gives a junior creditor the right to request that senior creditors satisfy their claims from assets not pledged by the junior creditor, when possible.

Interest in the Partnership

Refers to a partner’s share or stake in both the assets and profits (or losses) of a partnership, often governed by a partnership agreement.

Share of Profits

A proportion of the profits earned by a business that is allocated to an individual or entity, often based on ownership interest.

Partnership by Estoppel

A legal partnership that exists when a person has been represented as a partner in a firm and has acted upon that basis, despite not officially being a partner.