The cash ratios of four companies are listed below. $$\begin{array} { | l | c | }
\hline \text { Company } & \text { Cash Ratio } \
\hline \text { Jan Corp. } & 0.24 \
\hline \text { Rose, Inc. } & 0.12 \
\hline \text { Freelance, Inc. } & 0.18 \
\hline \text { Pioneer Corp. } & 0.30 \
\hline
\end{array}$$ Which company has the highest ability to repay its current liabilities?

Question

The cash ratios of four companies are listed below. $$\begin{array} { | l | c | } 
\hline \text { Company } & \text { Cash Ratio } \
\hline \text { Jan Corp. } & 0.24 \
\hline \text { Rose, Inc. } & 0.12 \
\hline \text { Freelance, Inc. } & 0.18 \
\hline \text { Pioneer Corp. } & 0.30 \
\hline
\end{array}$$ Which company has the highest ability to repay its current liabilities?

Quizplus · Accepted Answer

Pioneer Corp. has the highest cash ratio among the four companies, indicating that it has the highest ability to repay its current liabilities using its existing cash and cash equivalents.

The Cash Ratios of Four Companies Are Listed Below Which Company Has the Highest Ability to Repay Its Current