Question: e acid-test ratio differs from the current ratio in t at: A. Liabilities are divided by current assets. B. Prepaid expenses and inventory are

e acid-test ratio differs from the current ratio in t at: A.

e acid-test ratio differs from the current ratio in t at: A. Liabilities are divided by current assets. B. Prepaid expenses and inventory are excluded from the calculation orthe acid-test ratio. C. The acid-test ratio measures profitability and the current ratio does not. D. The acid-test ratio excludes short-term investments from the calculation. E. The acid-test ratio is a measure Of liquidity but the current ratio is not.

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