Alternate Formula of Quick Ratio?

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Quick Ratio Knowledge Center

Forum 3 caligo Student (MBA), India Alternate Formula of Quick Ratio? 🔥NEW Which formula is right: 1. The formulae given in the knowledge center or: 2. Quick Ratio = Current Assets -(Stock+Prepaid Expenses) / Current Liabilities. X Welcome to the Quick Ratio forum. The topic being discussed here is: "Alternate Formula of Quick Ratio?". Sign up now to gain access. It's free.   Comments Sort by date Sort by rating Rating   1 Jaap de Jonge Editor, Netherlands   Alternate Formula of Quick Ratio In my opinion your formula is wrong. In the quick ratio we are interested in liquidity, so that is why we divide all assets which are quickly convertible into cash (= current assets) by the current liabilities. So current assets / current liabilities. I don't see why you would want to subtract the stock and add prepaid expenses from/to the current assets.   0 caligo Student (MBA), India   Alternative Formula of Quick Ratio @Jaap de Jonge: thank you sir for solving my confusion, I am very grateful for your answer.. 👍🏻.   Leave a comment Share your knowledge or experience

More on Quick Ratio: Summary Discussion Topics Quick Ratio over Time Quick Ration in Banking Higher Quick Ratio is not Always Good Why ACID Test Ratio? 👀 Alternate Formula of Quick Ratio? Special Interest Group Do you know a lot about Quick Ratio? Become our SIG Leader

Quick Ratio Knowledge Center

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