Ask Question
BusinessBusiness
5 July, 17:29

A company has a cash ratio of 2.3. what does this imply?

+2
Answers (1)
  1. 5 July, 20:30
    0
    This implies that the company has an unnecessarily large amount of cash supply. Generally cash ratio is defined as ratio of a company's total cash and cash equivalents to its current liabilities. Then cash ratio can be determined by using the formula which is (Cash + Cash equivalents) Ă· Current liabilities. If cash &cash equivalents > current liabilities, it means the company has more cash. If cash &cash equivalents = current liabilities, it means the company has enough cash to pay the liabilities ... If cash &cash equivalents
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company has a cash ratio of 2.3. what does this imply? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Riverbed Inc. provides paid vacations to its employees. At December 31, 2020, 24 employees have each earned 2 weeks of vacation time. The employees' average salary is $690 per week. Prepare Riverbed's December 31, 2020, adjusting entry.
Answers (2)
Jameson broke into a large home last night knowing that he would find very valuable items that mobile and easy to steal. He believes he was able to take roughly $50,000 worth of merchandise.
Answers (1)
Jim (49) and Linda (50) are married and will file a joint return. They have two children, Todd (20) and Traci (15), who both lived with their parents all year. Todd has a part-time job, and Traci is still in high school.
Answers (1)
Pinnacle Corp. budgeted $264,760 of overhead cost for the current year. Actual overhead costs for the year were $214,170. Pinnacle's plantwide allocation base, machine hours, was budgeted at 50,840 hours. Actual machine hours were 40,770.
Answers (1)
Which American group tends to be the least adversely affected by outsourcing
Answers (1)
New Questions in Business
The prime minister of Equalia has called for the nation's legislators to enact new legislation designed to shift the country away from socialism toward a more capitalistic system.
Answers (1)
What is the best meaning of the term "the irreducible plurality of values"? some values, such as the value of human life or certain aesthetic goods, cannot be reduced to measurable utility.
Answers (1)
Herbie and irene have been married for almost 55 years. through it all they have remained committed to each other and have been as close as two people can be. over the years the passion has waned but they still stayed together.
Answers (1)
Total variable costs Group of answer choices initially increase as output increases and then decrease. always decrease with output. always increase with output. initially decrease and then increase with output.
Answers (1)
Lasso Corporation manufactures a product with the following full unit costs at a volume of 4,000 units: Direct materials $ 200 Direct labor 80 Manufacturing overhead (30% variable) 150 Selling expenses (50% variable) 50 Administrative expenses (10%
Answers (1)
Home » Business » A company has a cash ratio of 2.3. what does this imply?
Sign Up Forgot Password?