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:

Conscious

Pertains to the awareness of one's own existence, sensations, thoughts, surroundings, and the ability to experience feelings.

Anal Stage

The second stage in Freud's psychosexual development, occurring approximately between the ages of 18 months and three years, where the anus is the primary erogenous zone.

Weapon

An instrument or device designed to inflict harm or physical damage.

Inner Forces

Psychological factors or motivations that drive an individual's behavior from within.