Question

For calculating the super quick or cash ratio which current assets are considered? All current assets all current assets - inventory all current assets - inventory - sundry debtors only cash and short term investments

Answer 1

Answer:

There are two ways to calculate quick ratio: QR = (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities. QR = (Cash + Cash Equivalents + Marketable Securities + Accounts Receivable) / Current Liabilities.

Explanation: