Which of the Following Assets Would Be Used in Calculating

question 38

Multiple Choice

Which of the following assets would be used in calculating the current ratio but not normally in determining the quick ratio?

• A) Accounts receivable
• B) Cash
• C) Short-term investments
• D) Inventory

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, recognized by law as having rights and liabilities.

General Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Financial Manager

A professional responsible for managing the financial health of a corporation, focusing on planning, directing investment activities, and developing strategies.