A Company Has a Cash Ratio of 2

question 63

Multiple Choice

A company has a cash ratio of 2.3.What does this imply?

• A) The company has an unnecessarily large amount of cash and cash equivalents.
• B) The company does not have enough cash supply.
• C) The company is not in a position to pay off its long-term liabilities.
• D) The company is not in a position to pay off its current liabilities.

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