Match each of the ratios named with the proper formula for computation.
-(Cash + Marketable Securities) / Current Liabilities
A)Current Ratio
B)Quick Ratio
C)Cash Ratio
D)Operating Cash Flow Ratio

Question

Quizplus · Accepted Answer

The Cash Ratio is calculated as (Cash + Marketable Securities) / Current Liabilities. This ratio measures a company's ability to pay off its short-term liabilities with its cash and marketable securities, providing a strict measure of liquidity.

Match Each of the Ratios Named with the Proper Formula