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:

Expressed Agency

An agency relationship clearly stated in oral or written terms.

Agency

A relationship between two parties in which one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.

Agreement

One of the four elements necessary for a contract; consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree.

Agent

Describes a person or entity authorized to act on behalf of another, known as the principal, in dealings with third parties.