The numerator for the quick ratio is calculated by: Select one: a. Deducting inventory and prepaid expenses from total assets b. Dividing current assets by current liabilities c. Adding cash plus inventory d. Adding short-term investments and accounts receivable to cash
The numerator for the quick ratio is calculated by: Select one: a. Deducting inventory and prepaid expenses from total assets b. Dividing current assets by current liabilities c. Adding cash plus inventory d. Adding short-term investments and accounts receivable to cash
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 20MCQ
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Quiz Q5
![The numerator for the quick ratio is calculated
by:
Select one:
a. Deducting inventory and prepaid
expenses from total assets
b. Dividing current assets by current
liabilities
c. Adding cash plus inventory
d. Adding short-term investments and
accounts receivable to cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22710353-d37e-46ae-99de-991685eaeaea%2Fe07aad1d-240f-4e2d-9ce1-666b59218398%2Fau8zj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The numerator for the quick ratio is calculated
by:
Select one:
a. Deducting inventory and prepaid
expenses from total assets
b. Dividing current assets by current
liabilities
c. Adding cash plus inventory
d. Adding short-term investments and
accounts receivable to cash
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