Excerpts from Colter Corporation's Most Recent Balance Sheet Appear Below

question 150

Multiple Choice

Excerpts from Colter Corporation's most recent balance sheet appear below:
Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.
-The working capital at the end of Year 2 is:

• A) $850
• B) $770
• C) $400
• D) $80

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Definitions:

Caveat Emptor

A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk regarding the quality and condition of the product being purchased.

Freedom Of Contract

The principle that individuals have the liberty to choose who they enter into contracts with and the terms of those agreements.

Federal Competition Act

Legislation aimed at promoting fair competition in the marketplace to protect consumers and businesses.

Violation

The act of disregarding or not complying with a law, agreement, or code of conduct.