The Acid-Test Ratio Differs From The Current Ratio In That:

(Correct Answer Below)

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The Acid-Test Ratio Differs From The Current Ratio In That:

A. Liabilities are divided by current assets. B. Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio. C. The acid-test ratio measures profitability and the current ratio does not. D. The acid-test ratio excludes short-term investments from the calculation. E. The acid-test ratio is a measure of liquidity but the current ratio is not.
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B

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