B-There Transportation Calculated the Following Amounts Concerning Its Financial Information

question 103

Essay

B-There Transportation calculated the following amounts concerning its financial information for the years ending December 31, Year 2 and Year 1.
$\begin{array}{llr}& \underline{\text { Year } 2}& \underline{\text { Year } 1}&\\ \text {Current ratio } &40 \text { to}1&20 \text { to}1\\\end{array}$

-Refer to B-There Transportation.Is the change in the current ratio favourable or not? Explain.

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Definitions:

Restitution

The act of compensating for loss, damage, or injury caused; involves returning to the original state or compensating for loss.

Breach Of Contract

Neglecting to comply with any aspect of a contract, documented or verbal, without a lawful excuse.

Rescission

The legal act of cancelling or terminating a contract, returning the parties, as much as possible, to their positions prior to entering the agreement.

Rebuilt Transmission

A vehicle transmission that has been disassembled, inspected, repaired, and reassembled with new or refurbished components to meet original specifications.