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Quick Asset ratio is like a protection pan from overdrafts?
Quick asset ratio formula: current assets less stock and prepaid expenses/current liabilities less bank overdraft.
It seems the formula given in the text is the formula for calculating quick asset ratio.
Quick asset ratio (current assets less stock and prepaid expenses/current liabilities less bank overdraft). There is not the same certainty these days that the bank overdraft will not be immediately called in, some businesses do not deduct bank overdraft from current liabilities when calculating this ratio
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Accounting -> Quick asset ratio Quick asset ratio Quick asset ratio (current assets less stock and prepaid expenses/current liabilities less bank overdraft). There is not the same certainty these days that the bank overdraft will not be immediately called in, some businesses do not deduct bank overdraft from current liabilities when calculating this ratio. This ratio should always be at least 100%.
This course is very fruitful. very clearly designed course.
I agree 100% with this statement
How is Quick Asset Ratio calculated?
Quick asset ratio (current assets less stock and prepaid expenses/current liabilities less bank overdraft).