Inventory is omitted while computing the quick ratio or "acid test".
The quick ratio is computed as shown below:
= (Current Assets - Inventory) / Current Liabilities
As can be seen in the above formula, inventory is omitted while computing the quick ratio
So, the correct answer is the option of Inventory.
The "acid-taste" ratio is used to indicate an organization's capability to repay its current liabilities without relying on the sale of stock or on obtaining extra financing.
Inventory is not protected in calculating the ratio, as it is not in the essential asset which could result easily and unexpectedly converted into cash.
Your question is incomplete. Please read below for the missing content.
When calculating the quick ratio or "acid test" which current asset or liability is omitted?
A. Account [Payables
B. Inventory
C. Accounts Receivable
D. Cash
Learn more about the acid test here https://brainly.com/question/25814739
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