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

question 66

Multiple Choice

Excerpts from Zorra Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,370 and the cost of goods sold was $850.
-The working capital at the end of Year 2 is:

• A)$630
• B)$810
• C)$680
• D)$420

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Definitions:

Wellness Program

A coordinated and comprehensive set of health promotion and protection strategies implemented at the workplace, aimed at improving employee health.

Moral Hazard

Post-contractual increases in risky or negative behavior. Examples are reduced incentive to exercise care once you purchase insurance and reduced incentives to work hard once you have been hired. Moral hazard is similar to adverse selection in that it is caused by information asymmetry; it differs in that it is caused by hidden actions rather than hidden types.

Taxi Driver

A person employed to drive a car or van, which transports passengers to their chosen destinations for a fee.

Piece-rate

A payment method where workers are paid a fixed rate for each unit of production completed, encouraging productivity by directly linking pay to output.