BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Cash and Cash Equivalents are entered as current assets on a company’s balance sheet. The total value of cash and cash equivalents is calculated by adding together the total of all cash accounts and any highly liquid investments that can be easily converted into cash that qualify as a cash equivalent.

Detailed explanation-2: -The quick ratio is the value of a business’s “quick” assets divided by its current liabilities.

Detailed explanation-3: -Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. The Current Assets account is important because it demonstrates a company’s short-term liquidity and ability to pay its short-term obligations.

Detailed explanation-4: -The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is: the acid-test ratio. A company’s current ratio and an acid-test ratio are both greater than 1.