The ________ is a measure of a company's ability to meet its short-term obligations from cash and cash equivalents.

Question

Quizplus · Accepted Answer

The cash ratio measures a company's ability to meet its short-term obligations from cash and cash equivalents. It is calculated by dividing a company's cash and cash equivalents by its current liabilities. A higher cash ratio indicates a better ability to pay off short-term debts.

The ________ Is a Measure of a Company's Ability to Meet