Which of the following are excluded from the numerator in the calculation of the acid-test ratio? O A. inventory and short-term investments B. prepaid expenses and cash C. inventory and accounts receivable D. inventory and prepaid expenses In a bank reconciliation, interest revenue earned on a chequing account would be deducted from the book balance. True False Managers estimate bad debt expense based on O A. the historical-cost assumption B. their professional judgment O C. the cost constraint D. the revenue recognition principle