Which of the following items would not typically be included in the components of the current ratio?
A)Inventory
B)Accounts payable
C)Capitalized software development costs
D)Deferred charges

Question

Quizplus · Accepted Answer

Capitalized software development costs are not typically included in the components of the current ratio, which measures a company's ability to pay its short-term debts with its current assets. Inventory, accounts payable, and deferred charges are all commonly included in the current ratio calculation.

Which of the Following Items Would Not Typically Be Included