Which of the Following Is NOT Included in the Calculation

question 25

Multiple Choice

Which of the following is NOT included in the calculation of the numerator in the acid- test ratio?

• A)Cash and prepaid expenses
• B)Inventory and net current receivables
• C)Short- term investments and net current receivables
• D)Prepaid expenses and inventory

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Definitions:

Controlling Seats

Positions of authority in a corporation's board of directors that allow for direct influence over the company's decisions.

Shareholders

Individuals or entities that own shares in a corporation, making them partial owners of the company.

Horizontal Merger

A merger between companies in the same industry, often aiming to reduce competition or achieve economies of scale.

Acquirer

Refers to an entity or individual that purchases or takes control of another company or asset.