Question

Which of the following is not included in the computation of the quick ratio? a. Accounts receivable b. Marketable securities c. Cash inventory

Answer 1

Answer:

D) Inventory

Explanation:

In calculating the quick ratio only the most liquid assets of the firm are relevant.

The quick ratio is calculated as follows,

Quick ratio

= Cash + Marketable securities + Accounts receivables / Current Liabilities

Non-Liquid assets like the inventory that may take longer to liquidate depending on the market are not included as this ratio measures the emergency ability of a company to pay back its current liabilities.

Hope that helps

Answer 2

The cash inventory is not a part of the computation of the quick ratio.

What is the quick ratio?

This is the measurement that is made in order to determine if a business is able to meet the short term obligations that it has.

It is to know if the obligations can be met with the liquid assets that the company has at hand.

Read more on quick ratio here: https://brainly.com/question/25894261