The Cash Ratio Is Used to Evaluate The

question 25

Multiple Choice

The cash ratio is used to evaluate the:

• A)liquidity of a firm.
• B)speed at which a firm generates cash.
• C)length of time that a firm can pay its bills if no additional cash becomes available.
• D)ability of a firm to pay the interest on its debt.
• E)relationship between the firm's cash balance and its current liabilities.

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Definitions:

List Price

The published price of a product or service, often suggested by the manufacturer or service provider, before any discounts or negotiations.

Standard Amount

A pre-determined or fixed quantity used as a benchmark, reference, or norm for measurements, production, or financial assessments.

Net Worth

The total value of an individual's or entity's assets minus their liabilities; a measure of financial health.

Speakerphone

A device that enables a telephone to function without the need to hold the handset, incorporating a microphone and loudspeaker for hands-free communication.