The acid-test ratio differs from the current ratio O Because it excludes prepaid expenses and inventory O Because liabilities are divided by current assets O Because it measures profitability O Because it excludes short-term investments O Because it excludes prepaid expenses and Inventory and because it measures profitability CrossSports had interest expense of $12,000 and its income before interest and income taxes was $28,000. Its times interest eamed ratio 0122 103 O is acceptable is both 2.3 and acceptable O is both 0.3 and acceptable CrossSports had interest expense of $12,000 and its income before interest and income taxes was $28,000. Its times interest earned ratio is 23 10.3 is acceptable Is both 2.3 and acceptable Is both 0.3 and acceptable