A. This answer incorrectly includes inventory in the calculation of the numerator.
B. This answer does not include the receivables in the numerator of the calculation.
C. The acid test (or quick) ratio is calculated as follows: (Cash + Receivables + Trading Securities) / Current Liabilities. Given the information in this question, we get ($30,000 + $20,000 + $45,000) / $85,000. This is 1.1.
D.This answer includes all current assets in the calculation.
