Quick assets are defined as:
A)Cash,short-term investments,and inventory.
B)Cash,short-term investments,and current receivables.
C)Cash,inventory,and current receivables.
D)Cash,noncurrent receivables,and prepaid expenses.
E)Accounts receivable,inventory,and prepaid expenses.

Question

Quizplus · Accepted Answer

Quick assets are the assets that can be easily converted into cash. Cash, short-term investments, and current receivables are considered as quick assets because they can be quickly converted into cash. Inventory is not considered as a quick asset because it may take some time to sell and convert it into cash. Noncurrent receivables and prepaid expenses are not quick assets as they cannot be easily converted into cash. Therefore, the best choice is B.

Quick Assets Are Defined As