Which of the following are components of the current ratio?
A)Accounts receivable and short term investments
B)Inventory, retained earnings, and accounts payable
C)Accounts payable, dividends, and cash
D)Short term investments, equipment, and land

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Therefore, the components of the current ratio are current assets, which include accounts receivable and short-term investments, and current liabilities. None of the other answer choices include only current assets and liabilities.

Which of the Following Are Components of the Current Ratio