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Investing and Financial Markets
Commercial Insurance
Business Accounting and Bookkeeping

Is inventory considered a quick asset?

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Wiki User
March 28, 2012 3:03AM

No. Quick assets must be one step or less to convert to cash. Quick assets are cash (doesn't need to be converted), A/R and temporary investments (cash just needs to be collected).

Inventory is considered a current asset, but not a quick asset, because it requires two steps to convert to cash. It must be sold, and then the cash must be collected.