The Numerator in the Calculation of the Quick Ratio Includes

question 154

Multiple Choice

The numerator in the calculation of the quick ratio includes which of the following items?

• A)Total current assets
• B)Total current assets less inventory only
• C)Total current assets less prepaid expenses only
• D)The sum of cash, short-term investments, and net current receivables

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Definitions:

Voting Shares

Equity securities granting holders the prerogative to vote on corporate decisions and board member selections.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders as a return on their investment in the company's equity.

Voting Shares

Voting shares that enable the owner to have a say in corporate affairs, such as the selection of the board of directors.

Held For Sale

Refers to assets that a company intends to sell within the next year, often reported separately on financial statements.