A Very Low Cash Ratio Does Not Send a Strong

question 79

True/False

A very low cash ratio does not send a strong message to investors and creditors that the company has the ability to repay its short-term debt.

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Definitions:

Postdated Check

A check written with a date in the future, preventing it from being cashed or deposited until that date.

Authorized

Having been officially approved or given permission by a relevant authority.

Customer's Account

An account held by a brokerage or financial institution on behalf of a client, for the purpose of trading or managing securities and other financial assets.

Wire Transfer

An electronic method of transferring funds from one individual or institution to another without the exchange of physical money.