Most firms calculate their quick assets by subtracting the value of their inventory from their current asset total.

Question

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Quick assets are assets that can be easily converted to cash within a short period of time, usually within 90 days. Inventory is considered a less liquid asset as it may take longer to sell and convert into cash. Therefore, most firms calculate their quick assets by subtracting the value of their inventory from their current asset total.

Most Firms Calculate Their Quick Assets by Subtracting the Value