Cash Equivalents Include

question 12

Multiple Choice

Cash equivalents include

• A) checks
• B) coins and currency
• C) money market accounts and commercial paper
• D) stocks and short-term bonds

---

Definitions:

Asset Turnover Ratios

Asset turnover ratios measure how efficiently a company uses its assets to generate sales, indicating operational efficiency.

Financing Policies

These are strategies that a company formulates for managing its finances, including decisions on debt, equity, and internal financing methods.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Debt Ratio

The debt ratio measures a company's financial leverage, calculated by dividing total liabilities by its total assets.