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

question 116

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 acid-test ratio at the end of Year 2 is closest to:

• A)0.72
• B)0.83
• C)0.59
• D)1.25

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Definitions:

Gross Benefit

Gross benefit refers to the total positive outcomes or advantages gained from an activity or investment before subtracting any costs.

Training Program Cost

The total expense incurred in the design, development, delivery, and evaluation of a training program.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, comparing the magnitude and timing of gains to costs.

ROI

A metric used to evaluate the efficiency or profitability of an investment, comparing net gain to initial cost.