Colton Corp

question 82

Multiple Choice

Colton Corp. has current assets of $4.5 million. The current ratio is 1.25 and the quick ratio is 0.75. What is the amount of Colton's current liabilities (in millions) ?

• A) $4.5
• B) $1.8
• C) $2.4
• D) $2.9
• E) $3.6

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Definitions:

Payee

The individual or entity to whom a payment is to be made.

Drawee

A drawee is the party in a transaction, usually a bank, upon whom a check or draft is drawn and is responsible for paying the specified amount.

Time-certain Requirement

A provision in a contract or agreement that specifies a precise time by which an obligation must be fulfilled.

Constructive Conflict

refers to conflict that, when managed well, results in productive disagreement, leading to creative solutions and improvements without personal attacks.