Which of the Following Is Not Included in the Computation

question 98

Multiple Choice

Which of the following is not included in the computation of the quick ratio?

• A)Cash
• B)Prepaid expenses
• C)Accounts receivable
• D)Marketable securities

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Definitions:

Aging

A method used to categorize and manage accounts receivable based on the length of time they have been outstanding.

Accounts Receivable

Amounts owed to a company by its customers for goods or services delivered or used but not yet paid for.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Advances

Payments or funds given ahead of a normal schedule or before the receipt of goods or completion of services.