Which of the Following Statements Is True About the Days

question 50

Multiple Choice

Which of the following statements is true about the Days' Cash on Hand ratio?

• A) It is not useful in comparing different businesses to one another.
• B) It uses all current assets in the numerator of the ratio.
• C) The only operating expense used in the denominator of the ratio is depreciation expense.
• D) It may be useful in determining whether a business is able to meet its cash commitments.

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Definitions:

Upstream Commerce

The activities involved in the sourcing and procurement processes before goods reach the retailer or final consumer.

Water Transportation

A method of transporting goods and people using waterways, including oceans, rivers, lakes, and canals, utilizing various types of vessels.

Road Transportation

The movement of goods and people from one place to another over roads, using vehicles such as cars, trucks, and buses.

War of 1812

The War of 1812 was a military conflict fought between the United States and the British Empire, primarily over maritime rights and territorial expansion, strengthening U.S. nationalism and leading to a period of peaceful relations.