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A company has a cash ratio of 0 . 4 2 to 1 . Which of the following describes the meaning of that ratio? Multiple

A company has a cash ratio of 0.42 to 1. Which of the following describes the meaning of that ratio?
Multiple Choice
The companys current and quick ratios are higher than 0.42 to 1.
The companys analysts will be concerned about the companys fairly low margin of safety.
The company has $0.42 of current liabilities for every $1.00 of cash and cash equivalents.
The companys cash reserves are low.

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