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:

British Pounds

The British pound is the official currency of the United Kingdom, symbolized as GBP, and is one of the world's major currencies traded in foreign exchange markets.

Canadian Dollars

The currency of Canada, represented by the symbol CAD, and used throughout the country for all financial transactions.

Inflation Rate

The inflation rate is the percentage increase in the general price level of goods and services in an economy over a period of time.