Accounts receivable are current assets, and if they decrease, both the current ratio and the quick ratio would decrease, because accounts receivable are included in the numerator of both ratios. Since they are included in both ratios, accounts receivable cannot account for the disparity (difference) between the current and quick ratios.
Inventory is included in the numerator of the current ratio but it is not included in the numerator of the quick ratio. Thus, inventory accounts for the disparity (difference) between the current and quick ratios.
Current portion of long-term debt is a current liability, and if it increases, both the current ratio and the quick ratio would decrease. Since the current portion of long-term debt is included in the denominator of both ratios, it cannot account for the disparity (difference) between the current and quick ratios.
Cash is a current asset, and if it decreases, both the current ratio and the quick ratio would decrease, because cash is included in the numerator of both ratios. Since it is included in both ratios, cash cannot account for the disparity (difference) between the current and quick ratios.
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