Which of the following current assets is NOT included when calculating the acid-test ratio?
A)inventory
B)marketable securities
C)cash
D)accounts receivable

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, is a measure of a company's short-term liquidity. It only takes into account the most liquid assets that can be quickly converted into cash, such as cash, marketable securities, and accounts receivable. Inventory is not included as it may take longer to sell and convert into cash.

Which of the Following Current Assets Is NOT Included When