Which of the following is not included in the computation of the quick ratio?
A)prepaid expenses
B)cash
C)accounts receivable
D)marketable securities

Question

Quizplus · Accepted Answer

The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to pay off its short-term liabilities with its most liquid assets. The assets included in the quick ratio calculation are cash, marketable securities, and accounts receivable. Prepaid expenses are not considered a liquid asset and therefore are not included in the computation.

Which of the Following Is Not Included in the Computation