bapswarrior

In the questions I have come across in Qbank/Schweser, they have included the Prepaid Expenses in Current Ratio (but not the more defensive liquidity ratios).

I see your logic on excluding it, but have never actually seen it excluded (or any other Current Asset) in practice. Even dating back to undergrad, I have always seen Current Ratio = Current Assets / Current Liabilities with no mention of excluding any current assets.