When computing the acid test ratio, the numerator will include all of the following EXCEPT for:

Question

Quizplus · Accepted Answer

The numerator of the acid test ratio, also known as the quick ratio, includes only quick assets, which are assets that can be easily converted to cash. Quick assets include cash, short-term investments, and net current receivables. Prepaid expenses are not considered quick assets and are therefore not included in the numerator of the acid test ratio.

When Computing the Acid Test Ratio, the Numerator Will Include