Question: The acid - test ratio differs from the current ratio in that: Multiple Choice Prepaid expenses and inventory are excluded from the calculation of the

The acid-test ratio differs from the current ratio in that:
Multiple Choice
Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio.
The acid-test ratio measures profitability and the current ratio does not.
Liabilities are divided by current assets.
The acid-test ratio is a measure of liquidity but the current ratio is not.
The acid-test ratio excludes short-term investments from the calculation.

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