Which of the Following Statements Is True About the Days

Multiple Choice

Which of the following statements is true about the Days' Cash on Hand ratio?

A) It is not useful in comparing different businesses to one another.
B) It uses all current assets in the numerator of the ratio.
C) The only operating expense used in the denominator of the ratio is depreciation expense.
D) It may be useful in determining whether a business is able to meet its cash commitments.