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:

Completion of Sale

This term signifies the point at which a transaction is finalized, and all conditions for the sale have been satisfied, transferring ownership from seller to buyer.

Equity

The amount of ownership interest in an asset or business, after deducting all debts associated with that asset.