Ask Question
6 November, 23:02

A company's days' cash on hand is computed by dividing: Group of answer choices cash and short-term investments by daily cash operating expenses. cash by total cash operating expenses. cash, short-term investments, and accounts receivable by daily cash operating expenses. average cash over the period by daily cash operating expenses.

+5
Answers (1)
  1. 6 November, 23:18
    0
    The answer is A. cash and short-term investments by daily cash operating expenses

    Explanation:

    This is calculated as follows:

    cash and short-term investments (cash equivalents) : daily cash operating expenses.

    Cash equivalents are very short-term securities. They are very liquid and can be converted to cash very quickly. Examples are bank accounts short-term securities like treasury bills.

    Days cash on hand is the number of days that a firm can afford to pay its operating expenses, given the amount of cash available.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company's days' cash on hand is computed by dividing: Group of answer choices cash and short-term investments by daily cash operating ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers