QuestionAugust 7, 2025

Which of the following is included in the computation of the quick ratio? ) Accounts receivable Supplies Prepaid rent Inventory

Which of the following is included in the computation of the quick ratio? ) Accounts receivable Supplies Prepaid rent Inventory
Which of the following is included in the computation of the quick ratio?
) Accounts receivable
Supplies
Prepaid rent
Inventory

Solution
4.6(151 votes)

Answer

Accounts receivable Explanation 1. Identify Quick Assets Quick assets include cash, accounts receivable, and marketable securities. They exclude inventory, supplies, and prepaid expenses. 2. Determine Inclusion in Quick Ratio Accounts receivable is included as it is a quick asset. Supplies, prepaid rent, and inventory are not included.

Explanation

1. Identify Quick Assets<br /> Quick assets include cash, accounts receivable, and marketable securities. They exclude inventory, supplies, and prepaid expenses.<br /><br />2. Determine Inclusion in Quick Ratio<br /> Accounts receivable is included as it is a quick asset. Supplies, prepaid rent, and inventory are not included.
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