does a/c receivables is part of quick ratio?

narayani.ankit
Posts: 3
Joined: Tue Dec 02, 2014 1:51 pm

does a/c receivables is part of quick ratio?

Postby narayani.ankit » Sat Dec 06, 2014 12:03 pm

And what si the difference between marketable securities and a/c recviables?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

does a/c receivables is part of quick ratio?

Postby edupristine » Mon Dec 08, 2014 7:04 am

Yes account receivables are a part of current assets( will excluded in cash ratio).

Difference:-
Goods & services sold or rendered on credit will lead to accounting entry as a account receivables in current assets column.

Sometimes company purchase short term securities because they don't want to loose their time value of money on cash in hand is called marketable securities. Ex- Commercial papers, treasury bills etc.


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