Which one of the following statements is NOT true?
A) The higher the cash balance, the better the ability of the company to meet its short-term financial obligations.
B) The lower the cash balance, the better the ability of the company to meet its short-term financial obligations.
C) The level of the cash balance has no bearing on the company's ability to meet its short-term financial obligations.
D) None of the above.

Question

Quizplus · Accepted Answer

A lower cash balance means the company has less cash on hand, which can make it more difficult to meet short-term financial obligations. Therefore, statement B is not true.

Which One of the Following Statements Is NOT True