Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Explore thousands of questions and answers from a knowledgeable community of experts ready to help you find solutions. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

A company has a cash ratio of 2.3. What does this imply?
OA. The company is not in a position to pay off its current liabilities.
OB. The company has an unnecessarily large amount of cash and cash equivalents.
OC. The company is not in a position to pay off its long-term liabilities.
◇ D. The company does not have enough cash supply.

Sagot :

GinnyAnswer

Final answer:

A cash ratio of 2.3 indicates the company has a strong ability to cover short-term obligations with liquid resources, showing financial stability.


Explanation:

The company does not have enough cash supply. A cash ratio of 2.3 implies that the company's liquid resources are more than twice its current liabilities, showing it has a strong ability to cover its short-term obligations with cash and cash equivalents.

This indicates that the company is highly liquid and in a good position to meet its current financial obligations without resorting to external financing, making it financially stable in the short term.


Learn more about Cash Ratio and Liquidity in Business here:

https://brainly.com/question/15586630


We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.