What are 'Quick Assets'
Anything having commercial or exchange value that can easily be converted into cash, or that is already in cash form. Quick assets are the highly liquid assets held by a company, including cash, marketable securities and accounts receivable. Quick assets are often calculated as current assets (cash + marketable securities + accounts receivable) minus inventories (since inventories are often a firm's leastliquid current assets). Quick assets are used by companies to calculate certain financial ratios that are used in decision making, including the quick ratio.
BREAKING DOWN 'Quick Assets'
The quick ratio (sometimes called the quick asset ratio or "acid test") is a financial ratio that divides a company's cash + marketable securities + accounts receivable by its current liabilities.
By keeping inventories out of the equation, the quick ratio allows the company to focus on its quick assets â€“ those that could be quickly converted to cash â€“ and helps the company determine if it could meet its financial obligations if sales (and revenues) were to cease.
The current ratio, on the other hand, is equal to current assets (including inventories and any assets that could be converted into cash within a "normal" 12month operating period) divided by current liabilities.

Quick Ratio
The quick ratio is an indicator of a companyâ€™s shortterm liquidity. ... 
Current Assets
A balance sheet account that represents the value of all assets ... 
Cash Asset Ratio
The current value of marketable securities and cash, divided ... 
Liquidity
The degree to which an asset or security can be quickly bought ... 
Other Current Assets  OCA
A firm's assets that do not include cash, securities, receivables, ... 
Cash Ratio
The ratio of a company's total cash and cash equivalents to its ...

Term
What Are Quick Assets?
A companyâ€™s quick assets can be easily converted into cash. 
Markets
Liquidity Measurement Ratios: Quick Ratio
By Richard Loth (Contact  Biography)The quick ratio  aka the quick assets ratio or the acidtest ratio  is a liquidity indicator that further refines the current ratio by measuring the amount ... 
Investing Basics
Current Assets
Current assets are all of the assets a company uses to fund its daily operations. These are the assets the company could convert into cash within a year in the normal course of business. 
Markets
Liquidity Measurement Ratios: Cash Ratio
By Richard Loth (Contact  Biography)The cash ratio is an indicator of a company's liquidity that further refines both the current ratio and the quick ratio by measuring the amount of cash, cash ... 
Investing Basics
Do Your Investments Have ShortTerm Health?
If a company is strong enough to survive tough times, it is more likely to provide longterm value. 
Forex Education
2. Know The Current Assets
Learning to read the balance sheet can provide great insight into the financial strength of a company. 
Economics
What is the Cash Ratio?
The cash ratio is the ratio of a company's total cash and cash equivalents to its current liabilities. 
Fundamental Analysis
Dynamic Current Ratio: What It Is And How To Use It
Learn why this ratio may be a good alternative to the current, cash and quick ratios. 
Options & Futures
Understanding Financial Liquidity
Understanding how this measure works in the market can help keep your finances afloat. 
Fundamental Analysis
Understanding Activity Ratios
Activity ratios measure how effectively a business uses its assets.

What is the formula for calculating the quick ratio in Excel?
Understand the basics of the quick ratio, including how it is used as a measure of a company's liquidity and how to calculate ... Read Answer >> 
When are current assets converted to liquid assets?
Understand the meaning of the accounting term ''current assets,'' and learn when and how current assets are converted into ... Read Answer >> 
What are some alternative liquidity ratios to the cash ratio?
Learn what the cash ratio measures, and understand what two other liquidity ratios can be used by a company to replace the ... Read Answer >> 
What are the main differences between the current ratio and the quick ratio?
Find out how the quick ratio and the current ratio can offer different views on a company's ability to pay off liabilities. Read Answer >> 
How do you calculate the quick ratio?
Read about the quick ratio and about the different ways of calculating it, where to find information for it and when you ... Read Answer >> 
Are current assets liquid or capital?
Take a deeper look at liquid current assets for businesses and individuals, and learn how they differ from other types of ... Read Answer >>