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:

Clean Hands

A legal principle that one cannot seek judicial relief or assert a legal right if they have acted unethically or in bad faith in relation to the subject of their claim.

Plaintiff

The party who brings a case against another in a court of law, alleging harm or injustice.

Specific Performance

A legal remedy in contracts law where the court orders the party who breached the contract to perform their contractual obligations rather than paying damages.

Rare Book

A book considered valuable due to its scarcity, age, historical significance, first edition status, or connection to a notable event or person.