The Formula for Calculating the Cash Ratio Is ________

question 63

Multiple Choice

The formula for calculating the cash ratio is ________.

• A) (Cash) / Total liabilities
• B) (Cash + Cash equivalents) / Total current liabilities
• C) (Cash + Cash equivalents) / Total assets
• D) (Cash equivalents) / Total current liabilities

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Definitions:

Unpaid

Work or services performed without receiving financial compensation.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

Legal Doctrine

A framework, set of rules, procedural steps, or test, often established by precedent in the common law, for making a determination in a lawsuit.

Employers Liable

Pertains to the legal responsibility of employers for the actions of their employees and for providing a safe working environment.