Which of the Following Items Would Not Typically Be Included

question 61

Multiple Choice

Which of the following items would not typically be included in the components of the current ratio?

• A)Inventory
• B)Accounts payable
• C)Capitalized software development costs
• D)Deferred charges

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Definitions:

Publicly Traded

describes a company whose shares are bought and sold on stock exchanges, available to general investors.

Securities Markets

Securities markets are financial markets where the trading of securities like stocks and bonds takes place, facilitating equity or debt capital formation and liquidity.

Majority Shareholder

An individual or entity owning more than 50% of a company's shares, giving them significant control over the company's decisions.

Close Corporation

A type of corporation characterized by a small number of shareholders, no public market for its shares, and often operated similarly to a partnership.