what to use to get acid-test or quick ratio

fustrated · #1 Feb 23, 2007, 05:21 PM

do you include accrued liabilities when figuring the liabilities for getting your quick ratio and or acid-test ratio

I know I include accounts payable, income tax payable, notes payable(short-term) for my liabilities

For my assets I include accounts receivable, cash, marketable securities, prepaid expenses, but not inventory

thank you

fustrated · Feb 25, 2007, 04:37 AM

Quote:

Originally Posted by CaptainForest

What do you mean by Accrued Liabilities?

Such as at the end of the year, I accrued a liability to pay my employee’s their salary? If that is the case, then YES, you do include them since they are part of CURRENT LIABILITIES.

I am not sure. It is just on a list from the balance sheet. I will have to dig deeper and find out.

Thank so much for your help
very much appreciated.

fustrated

fustrated · Feb 25, 2007, 02:45 PM

Quote:

Originally Posted by CaptainForest

In that case, yes, you include Accrued Liabilities under current liabilities.

Thank you, for all your help
fustrated



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