Author Question: You are calculating the quick ratio for the General Fund. The General Fund balance sheet contains ... (Read 82 times)

wenmo · **on:** Jul 5, 2018

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 2

An account used with a related account to bring about a decrease in the net amount of the two account balances is called a(n)
a. contra-account.
b. expense account.
c. adjusting account.
d. revenue account.