The quick ratio does not include inventory in the denominator because few businesses can instantaneously convert their inventories into cash.

Name: The quick ratio does not include inventory in the denominator because few businesses can instantaneously convert their inventories into cash.
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The quick ratio does not include inventory in the numerator, not the denominator, because it measures a company's ability to meet short-term obligations without relying on the sale of inventory.

The Quick Ratio Does Not Include Inventory in the Denominator