Curry Had Current Liabilities of $1,000 at December 31, Year

question 4

Multiple Choice

$\begin{array}{l}\text { At December 31, Curry Co. had the following balances in selected asset accounts: }\\\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Cash } & \$ 300 & \$ 200 \\\hline \text { Accounts receivable, Net } & \$ 1200 & \$ 800 \\\hline \text { Inventory } & \$ 500 & \$ 300 \\\hline \text { Prepaid Expenses } & \$ 100 & \$ 60 \\\hline \text { Other Assets } & \$ 400 & \$ 250 \\\hline \text { Total Assets } & \$ 2500 & \$ 1610 \\\hline\end{array}\end{array}$
Curry had current liabilities of $1,000 at December 31, Year 2, and credit sales of $7,200 for Year 2.

-Curry Company's acid-test (quick) ratio at December 31,Year 2 was closest to which of the following?

• A) 1.5 to 1.
• B) 1.6 to 1.
• C) 2.0 to 1.
• D) 2.1 to 1.

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Definitions:

Western Land

Refers to territories in the western United States, historically significant in the context of exploration, settlement, and expansion during the 19th century.

Eastern Land

A vague term that could refer to territories or regions located to the east of a specific point of reference, often used in historical or geographical contexts.

Gold Discovery

The act or event of finding gold, often leading to gold rushes and significant migration of people seeking wealth.

Population Boost

An increase in the number of individuals in a population, often due to factors such as higher birth rates, lower death rates, or immigration.