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Question :  Quick assets do not include 

 

Option 1: Trade receivable 

Option 2: Cash  balance 

Option 3: Inventories and prepaid expenses 

Option 4: Marketable securities 


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Inventories and prepaid expenses 


Solution : Answer = Inventories and prepaid expenses 

Quick assets, which represent highly liquid assets, do not include inventories and prepaid expenses. Instead, they consist of cash balances, marketable securities, and trade receivables, which can be quickly converted into cash to meet short-term obligations or emergencies.

Quick assets = current assets – stock – prepaid expenses.
Hence, the correct option is 3.

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