This Question 1 pt 1 13 of 15 3 complete his Quiz 20 pts po

This Question: 1 pt 1 13 of 15 (3 complete) ? his Quiz: 20 pts possi IS The formula for calculating the cash ratio is O A. (Cash equivalents)/Total current liabilities O B. (Cash+Cash equivalents)/ Total current liabilities C. O D. (Cash + Cash equivalents)/ Total assets (Cash)/Total liabilities

Solution

Formula of cash ratio :

Cash ratio = Cash+Cash equivalent/Current liabilities

So answer is b) (Cash+Cash equivalents)/Total current liabilities