Which Financial Ratio Measures the Extent to Which the Company's

question 13

Multiple Choice

Which financial ratio measures the extent to which the company's capital is in cash or cash equivalents?

• A) quick ratio
• B) current ratio
• C) cash ratio
• D) strategic ratio
• E) inventory ratio

---

Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, without changing the shareholders' equity.

Stock Dividend

A distribution of extra shares to shareholders instead of a financial dividend.

Cash Dividend

A portion of a company's earnings distributed to shareholders in cash.

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits, indicating the company owes money.