Select the correct statement

Group of answer choices

Cash ratio is a liquidity ratio that measures short term solvency of a company.

Cash ratio is a interest coverage ratio that measures the long$-$term solvency of a company.

Cash ratio at Microsoft has been increasing from $2018$ to $2021,$ as MSFT generates more cash flows.

The optimal cash ratio should be above $1$ to ensure short$-$term solvency.