Which of the following account balances would not be included in the calculation of the current ratio?
A)Accounts receivable.
B)Short-term investments.
C)Equipment.
D)Supplies.

Question

Quizplus · Accepted Answer

The current ratio measures a company's ability to pay off its short-term liabilities using its current assets. Equipment is a long-term asset and therefore would not be included in the calculation of the current ratio. Accounts receivable, short-term investments, and supplies are all current assets and would be included in the calculation.

Which of the Following Account Balances Would Not Be Included