Question : Which of the following is not included in the quick asset?
Option 1: Cash in hand
Option 2: Trade Receivables
Option 3: Marketable Securities
Option 4: Prepaid Expenses
Answer (1)
11th Jan, 2024
Correct Answer: Prepaid Expenses
Solution :
The quick ratio, also known as the acid-test ratio, only includes assets that can be converted to cash in 90 days or less.
Inventory and prepaid expenses are not included.
Hence option 4 is the correct answer.
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