Current Asset The quick ratio (acid test) excludes whichcurrent asset?a) Inventoryb) Accounts receivablec) Cashd) Marketable securities

The quick ratio (also known as the acid-test ratio) is a financial metric used to assess a company's…

Answered: The quick ratio (acid test) excludes…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 14DQ

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The quick ratio (acid test) excludes which current asset? (a) Cash (b) Accounts receivable (c) Inventory (d) Marketable securities
14) Which of the following is the least liquid current asset? A) Accruals B) Accounts receivable C) Marketable securities D) Inventory
What is removed from current assets in order to calculate the Quick Ratio? marketable securities cash trade receivables Oiventory
The balance sheet account that is usually reported at its fair market value is: a. Short-term marketable securities b. Accounts receivable c. Current liabilities d. Inventory
The debt ratio is calculated by dividing total assets by total liabilities Group of answer choices True False
How do you decide the liquidity order (what asset come before the other...expenses vs prepaid vs inventory) of current assets?
Fair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securities
For which of the following balance sheet items will the book value and market value most likely be closest at the time the balance sheet is prepared? Select one: O a. Short-term debt O b. Net fixed assets O c. Long-term debt O d. Common stock O e. Retained earnings
Dividing quick assets by current liabilities is the calculation for the a.ratio of liabilities to stockholders' equity. b.acid-test ratio. c.current ratio. d.return on investment.
How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity mixb) Discount ratec) Income tax rated) Interest coverage ratio
These are ways in which depository financial institutions measure liquidity risk except: a. Liquid assets to total assets. b. Liquid assets to long term liabilities. c. Maturity gap analysis return. d. Net liquidity statement.
Quick assets divided by current liabilities is the: Select one: a.Current ratio. b.Working capital ratio. c.Quick asset turnover ratio. d.Acid-test ratio.

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The quick ratio (acid test) excludes which current asset? a) Inventory b) Accounts receivable c) Cash d) Marketable securities