Which of the Following Is the Correct Formula for Calculating

question 4

Multiple Choice

Which of the following is the correct formula for calculating the cash ratio?

• A)Cash ratio = (Cash + Bank)÷ Total liabilities
• B)Cash ratio = (Cash + Cash equivalents)÷ Total current liabilities
• C)Cash ratio = (Cash + Cash equivalents)÷ Total assets
• D)Cash ratio = (Bank + Cash equivalents)÷ Total current liabilities

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Definitions:

Seed Drill

An agricultural tool that sows the seeds for crops by positioning them in the soil and burying them to the correct depth, ensuring that seeds are distributed evenly and at optimal depths.

Experience

The knowledge or mastery of an event or subject gained through involvement in or exposure to it.

Productivity

The measure of the efficiency of production often calculated as the ratio of outputs produced to inputs used in the production process.

Constant Returns To Scale

Constant returns to scale occur when a proportional increase in all inputs leads to an equal proportional increase in output, implying efficiency in production.