Which of the following is not included in the computation of the quick ratio?
A)Cash
B)Prepaid expenses
C)Accounts receivable
D)Marketable securities

Question

Quizplus · Accepted Answer

The quick ratio,also known as the acid-test ratio,is a conservative variation of the current ratio.The quick ratio measures a company's immediate debt-paying ability.Only cash,receivables,and current marketable securities (quick assets)are included in the numerator.Less liquid current assets,such as inventories and prepaid expenses,are omitted.

Which of the Following Is Not Included in the Computation