When Calculating the Denominator for the Quick Ratio,you Would NOT

question 107

Multiple Choice

When calculating the denominator for the quick ratio,you would NOT include:

• A)accounts payable.
• B)long-term debt.
• C)salaries payable.
• D)current maturities of long-term debt.

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Definitions:

Expected Flow

An estimation of the quantity of a commodity, cash, or traffic moved in a certain direction over a given period.

Future Productive

The potential or capacity for increased production or efficiency in the future, often influenced by investments in technology, education, or infrastructure.

Investment Project

A project involving the allocation of capital resources to assets that are expected to yield returns over time, often evaluated for its potential profitability.

Market Interest Rates

The prevailing rate at which borrowers are willing to borrow money and lenders are willing to lend in the open market.