Economics · Financial Analysis
The quick ratio (acid-test ratio) excludes inventory from current assets primarily because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is less liquid and takes longer to convert into cash✓
- 2Inventory is considered a fixed asset
- 3Inventory is more valuable than cash
- 4Inventory is considered part of long-term investments
Correct answer
It is less liquid and takes longer to convert into cash
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