View Full Version : What to use to get acid-test or quick ratio
fustrated
Feb 23, 2007, 07:21 PM
Do you include accrued liabilities when figuring the liabilities for getting your quick ratio and or acid-test ratio:confused:
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
CaptainForest
Feb 24, 2007, 05:26 PM
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.
fustrated
Feb 25, 2007, 06:37 AM
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
CaptainForest
Feb 25, 2007, 01:39 PM
In that case, yes, you include Accrued Liabilities under current liabilities.
fustrated
Feb 25, 2007, 04:45 PM
In that case, yes, you include Accrued Liabilities under current liabilities.
Thank you, for all your help
fustrated
CaptainForest
Feb 25, 2007, 05:57 PM
You're welcome