This Statement of Facts Is Presented for Problems 12 and 13

question 6

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 current ratio?

• A)only (5)
• B)only (6)
• C)only (7)
• D)(5)and (7)

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Definitions:

Jointly Exhaustive

A characteristic of a set of categories or propositions that together cover all possible scenarios or outcomes, leaving no options unaccounted for.

Jointly Exhaustive

A condition in which a set of options or propositions covers all possible outcomes or cases, leaving no scenario unaddressed.

Consistent Principle

A rule or guideline in logic or mathematics that does not lead to a contradiction when applied.

Jointly Exhaustive

A condition in which all possible cases or outcomes are covered or accounted for by a set of categories or propositions.