The Formula for Calculating the Cash Ratio Is Calculated Is

question 73

Multiple Choice

The formula for calculating the cash ratio is calculated 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:

1934 Securities Act

U.S. legislation aimed at regulating the secondary securities market, requiring disclosure of material information related to securities transactions and aimed at combating fraud and manipulation.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to unintended damage or harm.

Audit

A systematic review or assessment of financial accounts, records, or transactions to ensure accuracy, compliance with standards, and to verify reports.

Negligent

Failing to take reasonable care to avoid causing harm or injury to others, typically resulting in legal liability.