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

Question

Quizplus · Accepted Answer

The acid-test ratio, also known as the quick ratio, only includes the most liquid current assets that can be quickly converted to cash to meet short-term obligations. This includes cash, marketable securities, and accounts receivable. Inventory is not included because it may take longer to sell and convert to cash.

Which of the Following Current Assets Is NOT Included When