A Company Has a Cash Ratio of 2

question 90

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 supply.
• 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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Definitions:

Categorical Imperative

A concept developed by the philosopher Immanuel Kant as an ethical guideline for behavior. In deciding whether an action is right or wrong, or desirable or undesirable, a person should evaluate the action in terms of what would happen if everybody else in the same situation, or category, acted the same way.

Unethical Decision

A choice or judgment that goes against moral principles or professional standards, often resulting in harm or unfairness.

Society

Society is a group of individuals living together in a more or less ordered community, often sharing common traditions, institutions, and values.

Legal

Pertaining to the law or the system of rules that a particular country or community recognizes as regulating the actions of its members.