Which of the following current assets is NOT included when calculating the acid-test ratio?
A)Inventory
B)Marketable securities
C)Cash
D)Accounts receivable

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 excludes inventory from the calculation because inventory is not as easily converted into cash compared to other current assets like marketable securities, cash, and accounts receivable.

Which of the Following Current Assets Is NOT Included When