Ebay Test
How do you calculate the quick / acid-test ratio for eBay?

I need to calculate the quick/acid-test ratio, and the formula my professor gave is "current assets minus inventories/current liabilities." On eBay's balance sheet, they have the following listed, but no inventories:

Cash and cash equivalents
Short-term investments
Accounts receivable, net
Loans and interest receivable, net
Funds receivable and customer accounts
Other current assets

Would the quick ratio be the same as the current ratio if there are no inventories? If not, what should I include?

Thanks!
Those are the current assets. But if the current ratio is found by current assets/current liabilities, then in this case, wouldn't they both be the same?

eBay doesn't have any inventory. They don't sell anything; they simply provide a venue (way for others to sell things).

So it would be their assets/liabilities. You should know from your class which are assets and which are liabilities.



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