Martin Company Has a Cash Ratio of 0

question 90

Multiple Choice

Martin Company has a cash ratio of 0.3.This implies that the company ________.

• A) has an unnecessarily large amount of cash supply
• B) is not sending a strong message to investors and creditors that it has the ability to repay its short-term debt
• C) is not in a position to meet its long-term obligations
• D) has no liquidity issues

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Definitions:

Inflammation

The body's protective response to injury, infection, or irritation, characterized by redness, warmth, swelling, and pain.

Esotropia

A condition where one or both eyes turn inward, commonly referred to as "cross-eyed."

Abnormally Inward Gaze

A condition where one or both eyes are turned inward, often referred to as cross-eyed or esotropia.

Choroid

The vascular coat of the eye between the sclera and the retina.