Which of the following is not included in the computation of the quick ratio?
A) inventory
B) marketable securities
C) accounts receivable
D) cash

Question

Quizplus · Accepted Answer

The quick ratio, also known as the acid-test ratio, is a measure of a company's liquidity and ability to meet short-term obligations. It is calculated by subtracting inventory from current assets and dividing the result by current liabilities. Since inventory is not considered a highly liquid asset, it is not included in the calculation of the quick ratio. Marketable securities, accounts receivable, and cash are typically included in the calculation.

Which of the Following Is Not Included in the Computation