Question

Which account is used in the current ratio but not the quick ratio?

A) marketable securities
B) accounts payable
C) accounts receivable
D) inventory

Answer 1

The account used in the current ratio but not the quick ratio is inventory.

Step-by-step explanation:

The account used in the current ratio but not the quick ratio is D) inventory. The current ratio compares a company's current assets to its current liabilities and includes inventory as a current asset.

However, the quick ratio excludes inventory and focuses on the more liquid assets of a company, such as cash, marketable securities, and accounts receivable. Therefore, inventory is used in the current ratio but not the quick ratio.