Having a cash ratio above 1.0 implies that a company has enough cash and cash equivalents to pay current liabilities.

Name: Having a cash ratio above 1.0 implies that a company has enough cash and cash equivalents to pay current liabilities.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

A cash ratio above 1.0 indicates that a company has more cash and cash equivalents than current liabilities, thus it has enough funds to pay off its short-term obligations.

Having a Cash Ratio Above 1