Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why is inventory excluded from the Quick Ratio? a. It is not as easily converted to cash; that is, it is not as liquid as

Why is inventory excluded from the Quick Ratio? a. It is not as easily converted to cash; that is, it is not as "liquid" as other current assets. b. It is hard to value, and thus inventory amounts are often unreliable. c. It depends on the type of inventory and industry, so this makes the Quick Ratio applicable for all industries and companies. d. Inventory can often be difficult to count or measure. e. None of these

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Global Financial Markets

Authors: Sabri Boubaker, Duc Khuong Nguyen

1st Edition

9813236647, 978-9813236646

More Books

Students also viewed these Finance questions

Question

A. $12,120 B. $9,000 C. $7,800 D. $10,500

Answered: 1 week ago