Inventories and Prepaid Assets Are Excluded from the Numerator Used

question 68

True/False

Inventories and prepaid assets are excluded from the numerator used to compute the quick ratio.

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Definitions:

Superior Mesenteric Vein

A large vein that drains blood from the small intestine, cecum, and part of the colon and pancreas into the hepatic portal vein.

Splenic Vein

A vein that drains blood from the spleen, pancreas, and portions of the stomach, emptying into the portal vein.

Hepatic Portal Vein

A blood vessel that carries nutrient-rich blood from the gastrointestinal tract and spleen to the liver for processing.

Osmotic Pressure

The pressure required to prevent the flow of a solvent across a semipermeable membrane, which separates solutions of different concentrations.