Quick Assets Are Defined As

question 237

Multiple Choice

Quick assets are defined as:

• A) Cash, noncurrent receivables, and prepaid expenses.
• B) Accounts receivable, inventory, and prepaid expenses.
• C) Cash, inventory, and current receivables.
• D) Cash, short-term investments, and current receivables.
• E) Cash, short-term investments, and inventory.

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Definitions:

Opportunity Cost

The value of the best alternative forgone when a choice is made, representing the benefits one could have received by taking an alternative action.

Gains From Trade

The benefit that entities receive from engaging in voluntary trade, often resulting in better allocation of resources and increased efficiency.

Comparative Advantage

The proficiency of an entity, whether it's an individual, corporate body, or state, to create a good or offer a service at a more economical opportunity cost than its competition.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing a particular course of action.