Question : How can you find the Quick Assets?
Option 1: Current Assets – Prepaid Expense
Option 2: Current Assets – Inventory + Prepaid Expense
Option 3: Current Assets – Inventory – Prepaid Expense
Option 4: Current Assets + Inventory – Prepaid Expense
Correct Answer: Current Assets – Inventory – Prepaid Expense
Solution : Quick assets are defined as assets that can quickly be converted to cash. Quick asset = Current Assets – Inventory – Prepaid Expense Hence option 3 is the correct answer.
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