# Quick Ratio Prepaid Exclusion Basis

Name the quick-ratio policy before comparing calculations that treat prepayments differently.

## Scope
Preparation and review only. No account action or professional decision.

## Inputs
Current assets/liabilities, inventory, prepaid balances, formula policy and reporting date.

## Workflow
1. Record whether the supplied formula excludes inventory only or inventory plus prepayments.
2. Calculate each stated basis separately in one currency.
3. Do not relabel an alternative formula as the sole correct policy without reviewer evidence.
4. Return policy-sensitive results; no solvency or lending decision.

## Output contract
current_assets | inventory | prepaids | liabilities | formula_basis | ratio | hold

## Fictional acceptance test
Fictional assets 120, inventory 30, prepaids 10, liabilities 50 give 1.8 on inventory-only exclusion and 1.6 on inventory-plus-prepaid exclusion. Record the difference as 0.2 ratio units, not 20% cash improvement.

## Review gates
Keep original values, source IDs and version dates. Unknown facts stay held. Use qualified review for hiring, legal and accounting conclusions. No send, share, sign-in, scheduling, ledger change or payment. Fictional contract review is not a live account compatibility test.

## Method source
https://corporatefinanceinstitute.com/resources/accounting/current-ratio-vs-quick-ratio/

Checked October 12, 2026. Oct12 live AIS Search Console: marketing Copilot37 impressions, Planable/Claude38, Planable/ChatGPT24, campaignbrief12, investoragent19, MuseIndia100. Social calendar/reporting topics follow parent-query leads; other professions follow documented workflow needs, not measured exact intent. Site impressions are not monthly volumes; exact topic volume is unmeasured.