The Acid-Test Ratio Differs from the Current Ratio

question 318

Multiple Choice

The acid-test ratio differs from the current ratio

• A)Because it excludes prepaid expenses and inventory
• B)Because liabilities are divided by current assets
• C)Because it measures profitability
• D)Because it excludes short-term investments
• E)Because it excludes prepaid expenses and inventory and because it measures profitability

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Definitions:

Congenital Hypothyroidism

A condition present at birth where the thyroid gland does not produce enough thyroid hormone, critical for growth and development.

Cretinism

A congenital condition caused by a deficiency in thyroid hormone, leading to stunted physical and mental growth.

Dwarfism

A medical or genetic condition resulting in an adult height significantly below the average.

Growth Hormone

A hormone produced by the pituitary gland that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.