The acid-test ratio differs from the current ratio in that:
A.
Liabilities are divided by current assets.
B.
Prepaid expenses and inventory are excluded from the calculation of the acid-test ratio.
C.
The acid-test ratio measures profitability and the current ratio does not.
D.
The acid-test ratio excludes short-term investments from the calculation.
E.
The acid-test ratio is a measure of liquidity but the current ratio is not.