Which of the following is included in the computation of the quick ratio?
A) Accounts receivable
B) Supplies
C) Prepaid rent
D) Inventory

Question

Quizplus · Accepted Answer

The quick ratio is calculated by dividing liquid assets (cash, marketable securities, and accounts receivable) by current liabilities. Therefore, accounts receivable is included in the computation of the quick ratio. Supplies, prepaid rent, and inventory are not considered as they are not considered as liquid assets.

Which of the Following Is Included in the Computation of the Quick