Why are inventories excluded from current assets when calculating the quick ratio?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting Understanding And Practice

ISBN: 9780077139131

4th Edition

Authors: Robert Perks

See More Books

Question Posted: May 10, 2024 02:01 AM

See More Questions

1A.What does it mean if a nation has a feminine communication style? B.How would you feel if you lived in that kind of culture? C.What is the difference between a patriarchal/matriarchal society and...
Please explain how each term is related to cloud computing using at least 3 sentences Computer Grids Database sharding DevOps Middleware Virtualization
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
For each of the following situations, determine what is covered by the personal auto policy.Indicate what part of the policy covers the loss and how much will be paid by the insurance company. If the...
Why are electric stoves and clothes dryers supplied with 240 V, but lights, radios, and clocks are supplied with 120 V?
Discuss why Agency Funds do not have a fund balance.
Find a California case where social media was used.
In the aftermath of a hurricane, an entrepreneur took a one-month leave of absence (without pay) from her $4,000 per month job in order to operate a kiosk that sold fresh drinking water. During the...
The city of Las Americas is dissatisfied with the private ambulance services. The city decided to purchase an ambulance operating contract and started operation of a municipal emergency medical...
How is the return on ordinary shareholders capital employed calculated?
Describe how to calculate: a current ratio; b quick ratio; c capital gearing ratio; d interest cover.
Some vectors used in cloning experiments contain bacterial promoters that are adjacent to unique cloning sites. This makes it possible to insert a gene sequence next to the bacterial promoter and...
The Step Company has the following Information for the year just ended: Sales in units Budget 15,000 Actual 14,000 Sales $150,000 $147,000 Less: Variable Expenses 90,000 82,600 Contribution Margin $...
What is the theme of Ray Bradbury's novel Fahrenheit 451 in the context of American culture, literary arts, and philosophic ideas. For this assignment, which should have both an analytical and...
Take a look at the home loan mortgage rate data below and explain the implications for home-buyers. 2021 Data: 2.96% - 30 Year Fixed Rate; Loan Amount $400K; Total Cost of Loan: $604,180; Total...
How does the concept of Level 5 leadership challenge traditional perceptions of effective leadership, and what implications does it have for organizational success and sustained financial...
lan Shields Communications, Inc., a cellular communications provider based in Michigan, has determined that its average CLV per customer is $1,210. Last year, the company obtained 57,100 new...
If you synthesized the tripeptide Leu-Phe-Ser from amino acids prepared by the Strecker synthesis, how many stereoisomers would you expect to be formed?
The column shown in the figure is fixed at the base and free at the upper end. A compressive load P acts at the top of the column with an eccentricity e from the axis of the column. Beginning with...

Why are inventories excluded from current assets when calculating the quick ratio?

Question:

Step by Step Answer:

It might take a l...View the full answer

Accounting Understanding And Practice

Students also viewed these Business questions