Which ratio is helpful in understanding whether the relationship between cash and marketable securities is reasonable in relation to current assets or total assets?
A) Lease expense/Total fixed assets
B) Total liabilities/Total assets
C) Cash/Marketable securities
D) Current assets/Total assets

Question

Quizplus · Accepted Answer

The ratio of Current assets/Total assets is helpful in understanding whether the relationship between cash and marketable securities is reasonable in relation to current assets or total assets. This ratio provides insight into the liquidity of the assets and how much of the company's assets are easily convertible into cash, which includes cash and marketable securities.

Which Ratio Is Helpful in Understanding Whether the Relationship Between