The acid-test ratio differs from the current ratio in that: Multiple Choice Liabilities are divided by current assets. Prepaid expenses and Inventory are excluded from the calculation of the acid-test ratio. The acid-test ratio measures profitability and the current ratio does not The acid-test ratio excludes short-term Investments from the calculation, ---- O O Liabilities are divided by current assets. Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio. The acid-test ratio measures profitability and the current ratio does not The acid-test ratio excludes short-term investments from the calculation The acid-test ratio is a measure of liquidity but the current ratio is not