Which of the following is NOT a component of the current ratio?

Which of the following is NOT a component of the current ratio?

Step 1: Understand what the current ratio is. It is a financial metric that helps assess a company's ability to pay its short-term obligations.
Step 2: Identify what current assets are. Current assets include cash, accounts receivable, and inventory.
Step 3: Identify what current liabilities are. Current liabilities are debts or obligations that are due within one year.
Step 4: Know how to calculate the current ratio. The formula is: Current Ratio = Current Assets / Current Liabilities.
Step 5: Determine what is NOT included in the current ratio. Long-term debt is not included because it is not a short-term obligation.

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