Question

Quick assets do not include ______.

Options

• Cash in Hand

• Prepaid Expenses

• Marketable Securities

• Trade Receivables

Answer 1

Quick assets do not include prepaid expenses.

Explanation:

Quick (liquid) assets comprise those current assets readily convertible into cash, e.g., cash in hand, marketable securities and trade receivables and exclude inventories and prepaid expenses because prepaid outlays cannot be converted into cash; thus, prepaid expenses are not included in quick assets.