Which Item Is Not Included in the Calculation for Both

question 177

Multiple Choice

Which item is not included in the calculation for both the quick ratio and the current ratio?

• A) accounts receivable
• B) current assets
• C) inventories
• D) current liabilities

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Definitions:

Variable Costs

Costs that vary directly with the level of output or production, such as materials and labor costs.

Industry Short-run

A period in which at least one of a firm's inputs is fixed, limiting the firm's ability to adjust fully to market changes.

Marginal Cost

The financial addition incurred by manufacturing one more unit of a product or service.

Fixed Cost

represents expenses that do not change in total regardless of the level of output or activity, such as rent or salaries.