Which of the following is NOT a component of the current ratio?
Practice Questions
1 question
Q1
Which of the following is NOT a component of the current ratio?
Cash
Accounts Receivable
Long-term Debt
Inventory
The current ratio is calculated using current assets (like cash, accounts receivable, and inventory) divided by current liabilities, so long-term debt is not included.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following is NOT a component of the current ratio?
Solution: The current ratio is calculated using current assets (like cash, accounts receivable, and inventory) divided by current liabilities, so long-term debt is not included.
