The financial accounting term quick asset is used to describe a subset of current assets used in the calculation of the quick ratio, also known as the acid test. Quick assets include those assets that can reasonably be used to pay current liabilities. This includes cash, marketable securities, and accounts receivable.
Quick Assets = Cash + Marketable Securities + Accounts Receivable
Alternatively:
Quick Assets = Current Assets - Inventories - Prepaid Expenses
Quick assets are used in the calculation of the quick ratio, which is a measure of a company's ability to convert assets into cash. The quick ratio is used by analysts and investors to evaluate how well a company is able to meet short term debt obligations using cash.
Quick assets consist of:
Cash: includes paper money, coins, checks, money orders, and money on deposit with banks.
Marketable Securities: common or preferred stock investments held by a company in another large corporation.
Accounts Receivable: goods or services received but not yet paid for by a customer.
Company A's balance sheet indicates cash and cash equivalents of $2,219,000, short-term investments of $1,416,000, and net receivables of $3,867,000. The quick assets for Company A would be:
= $2,219,000 + $1,416,000 + $3,867,000, or $7,502,000
balance sheet, cash, marketable securities, accounts receivable, acid test, prepaid expense
Explore Investing Further
Trading has never been easier, thanks to the rise of online platforms that enable you to buy and sell various assets at the click of a button. But with so many options available, it can be challenging to decide which platform is right for you.
Looking for a way to avoid swap fees while trading forex?
Below listed are the small reviews of the top 10 ETF brokers available across the United States.
Our top beginner's pick for copy trading is eToro. Read on for more details, plus seven good alternatives.
Swing trading stocks can be a great way for investors to take advantage of short-term stock market movements and gain significant returns. If you're interested in swing trading, the key to success lies in selecting the right stocks to buy and sell quickly for a profit.
The table below lists the best stock picks under $2, listed on public exchanges.
The table below lists the best stock picks under $1, listed both on public and OTC exchanges.
This section will highlight the best EV-trading penny stocks available in the United States.
The demand for sustainable energy has grown rapidly in recent years. This has resulted in increased scrutiny of the automotive market. As a result, the electric vehicle (EV) industry has made significant advancements.
Intelligent Bio Solutions Inc. is a life sciences company, founded in 2016 with headquarters in New York and is engaged in performing diagnostic tests, real-time monitoring, and non-invasive surgery for its patients. The firm has developed a CoV-2 Biosensor, which can be used in RNA virus detection.
Hour Loop was founded in 2013 with headquarters in Redmond, Washington. It’s an online retailer involved in e-commerce in the United States that hit the public markets on Jan 7th of 2022. The company sells home/garden decor, electronic products, kitchenware, and apparel through walmart.com, amazon.com, and hourloop.com.