This Statement of Facts Is Presented for Problems 12 and 13

question 3

Multiple Choice

This statement of facts is presented for problems 12 and 13: A hospital's trial balance shows the following captions: (1) cash equivalents; (2) prepaid insurance on buildings; (3) inventory of medicines; (4) short-term investments; (5) accumulated depreciation on buildings; (6) current portion of long-term debt;and (7) accounts receivable.
-Which of these seven accounts do not enter into the calculation of the quick ratio?

• A)(3), (5),and (6)
• B)(2), (5),and (7)
• C)(2), (3),and (5)
• D)(3), (5),and (7)

---

Definitions:

Anencephaly

A severe congenital condition characterized by the absence of a major portion of the brain, skull, and scalp.

Spina Bifida

A birth defect where there is incomplete closing of the backbone and membranes around the spinal cord.

Caffeine

A stimulant found in coffee, tea, and various beverages and medications, known to enhance alertness and reduce fatigue.

Chocolate Milk

A sweetened chocolate-flavored milk drink.