MANAGEMENT

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: -How Do You Calculate Cash Ratio? The cash ratio is calculated by dividing cash by current liabilities.

Detailed explanation-3: -The cash asset ratio is a financial ratio that seeks to determine a company’s liquidity by assessing its ability to pay off its short-term obligations with cash and cash equivalents. The cash asset ratio is calculated by dividing the sum of cash and cash equivalents by current liabilities.

Detailed explanation-4: -The accounts receivable turnover ratio is an accounting measure used to quantify how efficiently a company is in collecting receivables from its clients. The ratio measures the number of times times that receivables are converted to cash during a certain time period.