The Quick Ratio Is the Same as Current Ratio Except

question 73

Multiple Choice

The quick ratio is the same as current ratio except it does not consider

• A)cash
• B)accounts receivable
• C)prepaid items
• D)inventories

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Definitions:

Depreciation

The process of methodically allocating the expense of a physical asset over its functional life.

Sales Price

The amount at which goods or services are sold to customers, sometimes before discounts, taxes, or additional charges.

Equipment Cost

The total expense incurred in purchasing and preparing equipment for its intended use, including acquisition, delivery, and setup costs.

Land Account

An account in the financial statements that tracks the cost of land owned by a company.