Which of the following current assets are excluded from the numerator used to compute the acid-test or quick ratio?

a. inventories

b. accounts receivable

c. prepaid assets

d. Both inventories and prepaid assets are excluded.

2. What numerators are used in the computation of the accounts receivable turnover ratio and the inventory turnover ratio, respectively?

a. Net credit sales and Cost of goods sold

b. Cost of goods sold and Net credit sales

c. Net credit sales for both

d. Cost of goods sold for both