Big Red Drinks, Inc

question 49

Multiple Choice

Big Red Drinks, Inc. contracts to buy two tons of cranberries from Super Fruits, Inc. The contract states that Super Fruits is required to ship the cranberries to Big Red Drinks by Speedy Wind Air Freight. The contract is

• A) ​a bill of lading.
• B) ​a destination contract.
• C) ​a shipment contract.
• D) ​a warehouse receipt.

---

Definitions:

Gross Working Capital

The total amount of a company's current assets, which are assets likely to be converted into cash within one year.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Short-Term Debt

Financial obligations that are due for repayment within one year.

Current Liabilities

Obligations expected to require cash in less than one year, usually payables and accruals.