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:

Specified Conditions

Explicitly defined terms or requirements that must be met within a contract, agreement, or situation.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping organizations manage their cash flow and ensure they have enough cash to cover their obligations.

Receipts And Disbursements

Refers to the process of recording incoming and outgoing monetary transactions within a particular period.