Which items are included in the quick ratio numerator?

• A. Cash, Marketable Securities, and Accounts Receivable
• B. Cash and Inventory
• C. Cash, Marketable Securities, and Accounts Receivable
• D. Inventory, Accounts Receivable, and Accounts Payable

Answer: (C)

The quick ratio focuses on the most liquid assets that can be turned into cash quickly. The numerator includes cash, marketable securities, and accounts receivable because these are assets that can be converted to cash with little delay and cost. Inventory is not included because it may not be sold rapidly or at a predictable price, and accounts payable is a liability, not an asset, so it doesn't belong in the numerator. Therefore, the combination of cash, marketable securities, and accounts receivable is the correct representation of quick assets.