00:01
Hello students, here is a question, which of the following would not form a part of quick assets? so, we have four options here, we have to choose the right options.
00:09
So, the first option is receivables, second option is cash, third option is prepaid expenses and option d is marketable securities.
00:32
So, we need to choose the right options from this.
00:41
So, the quick assets are assets that can be easily converted into a cash with a short period of time, typically 90 days or less.
00:50
They are also known as liquid assets.
00:52
So, let us assign the, analyze the each option.
00:56
So, when it comes to option a, it is receivable.
00:59
So, there is an amount owned by the company by its customer and can be converted into cash when the customers pay their bill.
01:06
So, receivables are considered as quick assets.
01:09
So, the option b says cash.
01:12
Cash is the most liquid asset and can be used immediately to pay off liabilities.
01:18
So, therefore, cash is also the quick assets...