Multiple Select Question

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Which of the following statements are true regarding the current ratio and the acid$-$test ratio? $($Choose every correct answer.$)$

The acid$-$test ratio is a more conservative measure of a firm's liquidity.

Merchandise inventory is excluded from the numerator of the current ratio but included in the numerator of the acid$-$test ratio.

Both the current ratio and the acid$-$test ratio use current liabilities as the denominator.

The current ratio is sometimes referred to as the quick ratio.