You are calculating the quick ratio for the General Fund.The General Fund balance sheet contains the following captions: (1)cash; (2)cash equivalents; (3)taxes receivable; (4)inventory; (5)prepaid items;and (6)due from other funds.Which of these accounts will enter into the calculation?
A)(1)and (2)
B)(1), (2),and (3)
C)(1), (2), (3),and (6)
D)all six

Question

Quizplus · Accepted Answer

Cash and cash equivalents are the only accounts that enter into the calculation of the quick ratio.

You Are Calculating the Quick Ratio for the General Fund