When Calculating the Denominator for the Quick Ratio,you Would NOT

question 107

Multiple Choice

When calculating the denominator for the quick ratio,you would NOT include:

• A)accounts payable.
• B)long-term debt.
• C)salaries payable.
• D)current maturities of long-term debt.

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a designated person.

Payable

An amount of money that is owed and should be paid.

Definite Period

A specific, fixed duration of time identified in a contract or agreement during which certain actions must be performed or conditions met.

Presented

Shown, given, or made available for viewing or consideration.