Multiple Choice
Which of the following is the correct formula for calculating the cash ratio?
A) Cash ratio = (Cash + Bank) ÷ Total liabilities
B) Cash ratio = (Cash + Cash equivalents) ÷ Total current liabilities
C) Cash ratio = (Cash + Cash equivalents) ÷ Total assets
D) Cash ratio = (Bank + Cash equivalents) ÷ Total current liabilities
Correct Answer:
Verified
Correct Answer:
Verified
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