Cash,short-term investments and net current receivables are all components of the numerator of the quick ratio.

Question

Quizplus · Accepted Answer

Cash, short-term investments, and net current receivables are all considered to be quick assets, which means that they can be easily and quickly converted into cash. Therefore, they are included in the numerator of the quick ratio, which is a measure of a company's ability to meet its short-term obligations.

Cash,short-Term Investments and Net Current Receivables Are All Components of the Numerator