Accounting · Financial Ratios - Quick Ratio
Which specific component is typically excluded from the numerator when calculating the Quick Ratio to ensure the highest degree of immediate liquidity assessment for a firm?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Cash and bank balances
- 2Marketable securities
- 3Sundry debtors and receivables
- 4Inventory and prepaid expenses✓
Correct answer
Inventory and prepaid expenses
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