For each Multiple Choice question, prepare a 2-3 sentence description, that explains why the answer is correct (or alternatively why the others are wrong).

The fiscal 2011 balance sheet for Whole Foods Market reports the following data (in thousands). What is the company's current ratio? Cash and cash equivalents Accounts receivable Merchandise inventories Current assets Current liabilities $212,004 $175,310 $336,799 $1,453,144 $879,361 A) 0.27 B) 0.61 C) 1.27 D) 1.65 E) None of the above Which one of these statements about the accrual basis of accounting is false? A) Companies record events that change their financial statement in the period in which events occur, even if cash was not exchanged. B) Companies recognize revenue in the period in which the performance obligation is satisfied C) Companies record revenue only after they receive cash and have recorded expenses D) Companies record expenses in the same period that goods and services are consumed E) All of the answers are correct. Adjustments for previously recorded prepaid expenses A) Decrease assets and increase revenues B) Decrease expenses and increase assets C) Decrease assets and increase expenses D) Increase expenses and increase owner's equity E) Increase revenues and Decrease assets. A company makes a credit sale of $750 on June 1, term 2/10 net 30. What amount was received in payment if the customer pays on June 9. A) 750 B) 735 C) 720 D) 740 E) 780