Each of the following are included in both the current ratio and the acid-test ratio except
A) cash.
B) short-term investments.
C) net receivables.
D) inventory.

Question

Quizplus · Accepted Answer

Inventory is included in the current ratio, but excluded from the acid-test ratio, which only considers the most liquid assets (cash, short-term investments, and net receivables) that can quickly be converted into cash to pay off current liabilities.

Each of the Following Are Included in Both the Current