saykblahwah4089 saykblahwah4089
  • 02-01-2020
  • Business
contestada

Which of the following account balances would not be included in the calculation of the current ratio?
Accounts receivable
Short-term notes payable

Respuesta :

andromache andromache
  • 03-01-2020

Answer:

Equipment

Explanation:

The formula to compute the current ratio

Current ratio = Current assets ÷ Current liabilities

where,  

The current assets include cash, stock or supplies, account receivable, etc

And, the current liabilities include Short-term note payable + Accounts payable

It always comes in times plus it is a liquidity ratio

The equipment is a long term asset i.e fixed asset

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