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The current ratio differs from the acid-test (quick) ratio because: the acid-test ratio includes short-term investments but the current ratio does not. the denominator is

The current ratio differs from the acid-test (quick) ratio because:

the acid-test ratio includes short-term investments but the current ratio does not.

the denominator is different in each ratio.

the acid-test ratio does not include inventory but the current ratio does.

the current ratio does not include long-term liabilities but the acid-test ratio does.

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