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Inessa05 [86]
3 years ago
10

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.
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
5 0

Answer:

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.

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