Quick asset ratio
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Module 1: Accounting information

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Quick asset ratio

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Accounting - Quick asset ratio

Quick asset ratio

Quick asset ratio [1] (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%.

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Links:
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[1] http://alison.com/#

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