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

question 128

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 current ratio at the end of Year 2 is closest to:

• A) 0.32
• B) 0.38
• C) 1.25
• D) 1.20

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price.

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.

Elastic Demand

A condition where the quantity demanded of a product changes significantly in response to changes in its price.

Expenditures Decline

A situation where the amount of money spent by individuals or entities decreases over a period of time.