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What does the Quick Asset Ratio exclude from the numerator?
Options
A.a. Inventory
B.b. Cash
C.c. Accounts receivable
D.d. Current liabilities
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Step-by-Step Analysis
The question asks which item is excluded from the numerator in the Quick Asset Ratio (also known as the acid-test ratio).
Option a. Inventory: This is the item that is excluded. Quick assets are liquid assets that can be readily converted to cash, and since inventory ma......Login to view full explanationLog in for full answers
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