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:

Recessions

Phases of transitory economic regression that see a drop in business and industrial activities, typically identified by a GDP decrease across two back-to-back quarters.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, steep declines in industrial output, and severe deflation.

Lack of Investment

A situation where there is insufficient investment in an economy to support growth objectives, often leading to stagnation or decline in economic performance.

Foreign Purchases Effect

The phenomenon where changes in domestic prices can influence the demand for foreign and domestically produced goods.