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

question 145

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

• A)1.81
• B)2.62
• C)1.69
• D)1.36

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Definitions:

Rubber

A flexible, elastic material obtained from the latex of certain plants or synthetically produced, used in making tires, gloves, and various other products.

Gaseous Chemical Products

Substances in their gaseous state that are produced through chemical reactions for various industrial, medical, or domestic purposes.

Explosion

A sudden and violent release of energy that results in a rapid increase in volume and release of gases, often accompanied by heat, light, and sound.

Energy

The quantitative property that must be transferred to an object in order to perform work on, or to heat, the object.