Examlex

Solved

The Formula for the Quick Ratio Is Quick Assets Divided

question 104

True/False

The formula for the quick ratio is quick assets divided by non-current assets.


Definitions:

Direct Method

A cash flow statement preparation method that lists major classes of gross cash receipts and payments.

Cash Receipts

The money received by a business from transactions, including sales, debt collections, and other cash inflows.

Cash Payments

Cash payments refer to transactions in which money is exchanged immediately for goods or services, without the use of credit.

Accounts Payable

Liabilities or money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

Related Questions