Accounting · Ratio Analysis
While calculating the Quick Ratio (Liquid Ratio), which of the following current liabilities is traditionally excluded because it is often considered a extended short-term arrangement rather than an immediate cash obligation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Bank Overdraft✓
- 2Outstanding Expenses
- 3Bills Payable
- 4Sundry Creditors
Correct answer
Bank Overdraft
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