Which of the following assets would be used in calculating the current ratio but not normally in determining the quick ratio?
A) Accounts receivable
B) Cash
C) Short-term investments
D) Inventory

Question

Quizplus · Accepted Answer

Inventory is included in calculating the current ratio, as it is a current asset, but it is not used in determining the quick ratio because it may not be easily convertible into cash. Accounts receivable, cash, and short-term investments are all included in both the current ratio and the quick ratio.

Which of the Following Assets Would Be Used in Calculating