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4 March, 12:01

The numerator in the quick ratio includes all of the following except a. Temporary Investments. b. Accounts Receivable. c. Inventory. d. Cash.

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  1. 4 March, 12:27
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    c. Inventory.

    Explanation:

    The formula to compute the quick ratio is shown below:

    Quick ratio = Quick assets : total current liabilities

    where,

    Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net) + Temporary Investments, if any

    And the total current liabilities includes the account payable, short term obligations, etc
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