Which of the following accounts would be included in the calculation of the acid-test ratio?
$\begin{array}{|l|l|l|l|}
\hline & \begin{array}{l}
\text { Accounts } \
\text { Receivable }
\end{array} & \begin{array}{l}
\text { Prepaid } \
\text { Expense }
\end{array} & \text { Inventory } \
\hline \text { A) } & \text { Yes } & \text { Yes } & \text { No } \
\hline \text { B) } & \text { No } & \text { Yes } & \text { Yes } \
\hline \text { C) } & \text { No } & \text { No } & \text { Yes } \
\hline \text { D) } & \text { Yes } & \text { No } & \text { No } \
\hline
\end{array}$
A) Option A
B) Option B
C) Option C
D) Option D

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It includes accounts receivable and excludes inventory and prepaid expenses because these are not as readily convertible to cash.

Which of the Following Accounts Would Be Included in the Calculation