Question: The acid-test ratio differs from the current ratio in that:Multiple Choice Liabities are clivided by current atsets. Prepaid experies and irrentory are excluded from the
The acid-test ratio differs from the current ratio in that:Multiple Choice Liabities are clivided by current atsets. Prepaid experies and irrentory are excluded from the calculation of the acid-test ratio The acid test ratio measures profitatisty and the current ratio does not. The acid test ratio excludes short term irvestments from the calculation. The acid test ratio is a measure of liquidity but the cument ratio is not
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