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The acid-test ratio differs from the current ratio in that: Multiple Choice The acid-test ratio is a measure of liquidity but the current ratio is

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

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