All of the following account balances would typically be used to calculate a current ratio except:
A)sales.
B)accounts receivable.
C)accounts payable.
D)cash.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

Sales is not a balance sheet account and therefore would not be used to calculate a current ratio. The current ratio is calculated by dividing current assets by current liabilities. Current assets include accounts receivable, cash, and other assets that can be converted into cash within a year. Current liabilities include accounts payable and other short-term liabilities that are due within a year.

All of the Following Account Balances Would Typically Be Used