The quick assets are defined as:
A) Cash, short-term investments, and inventory.
B) Cash, short-term investments, and current receivables.
C) Cash, inventory, and current receivables.
D) Cash, noncurrent receivables, and prepaid expenses.
E) Accounts receivable, inventory, and prepaid expenses.

Question

Quizplus · Accepted Answer

Quick assets, also known as acid-test assets, are the most liquid assets that a company owns and can be easily converted into cash within a short period of time. Cash, short-term investments, and current receivables are considered quick assets because they can be converted into cash quickly. Inventory is not always considered a quick asset because it may take time to sell and convert into cash. Noncurrent receivables and prepaid expenses are not considered quick assets because they cannot be easily converted into cash within a short period of time.

The Quick Assets Are Defined As