Question

Quick assets include which of the following? Multiple Choice Market securities, receivables, and inventories. Cash, marketable securities, and inventories. Cash, marketable securities, and receivables. Cash, prepaid rent, and receivables.

Answer 1

Answer:

The correct answer is letter "C": Cash, marketable securities, and receivables.

Explanation:

The quick assets of a company can easily be converted into cash. Quick assets include cash, account receivables, and marketable securities, which are equity and debt securities that can be converted into cash within one year. To calculate the company's quick assets add its cash, account receivables, and marketable securities and subtract its inventory from that result.