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The Quick Ratio excludes which of the following ? 1.Accounts Receivable. 2.Inventory. 3.Cash.

MIS Reporting Financial Reporting Financial Accounting Financial Management Accounting Analysis
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Question added by mohammed ismail , Group Accounting Manager , AMS Holding Group
Date Posted: 2014/04/19
Upvote (1) Views (47) Followers (9) Answers (21) Report Question
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Muhammad Zubair
by Muhammad Zubair , CFO / Chief Accountant , RH Group

Correct answer is inventory

Umer Aziz
by Umer Aziz , Senior Accountant , TERNA Bahrain Holding - GEK Group (www.terna.gr)

Inventory

Juanito Jr De Guzman
by Juanito Jr De Guzman , Chief Accountant , Zen FZE

2. Inventory - though it is under current asset but fund availabity is uncertain. 

Muhammad mohsin saleem
by Muhammad mohsin saleem , General Accountant , Al Ghadeer Modern Trade Enterprises

quick ratio excludes inventory

Rajesh Perumbadari
by Rajesh Perumbadari , Joint Venture Audit Accountant , Kuwait Foreign Petroleum Exploration Company

It is Inventory

Deleted user
by Deleted user

Inventory!

Quick ratio = Cash + Marketable securities + A/R / Current liabilities

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

D- Inventory is the correct answer.

SRINIVAS RAO KANAMARLAPUDI
by SRINIVAS RAO KANAMARLAPUDI , Senior AGM , SEAWAYS SHIPPING AND LOGISTICS LIMITED

I agree with all, its INVENTORY

KHALID HAMID SIDDIQUI
by KHALID HAMID SIDDIQUI , Assistant Manager , Toyota - Indus Motor Company

While calculating Quick Ratio, Inventory excluded from the current assets.

ZIA UR REHMAN
by ZIA UR REHMAN , Assistant Finance Manager , Ejaz group of companies

Quick Ratio excludes the inventory, it that ratio which consists on current assets which are easily converted into cash 

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