NOTES TO FINANCIAL STATEMENTS (unaudited)
1. ORGANIZATION AND ACCOUNTING POLICIES -- InterCapital California Quality Municipal Securities
(the "Trust") is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-
end management investment company. It was organized on March 3, 1993 as a Massachusetts business trust and
had no operations until September 29, 1993 other than matters related to the sale and issuance of 7,113 common
shares of beneficial interest to Dean Witter InterCapital Inc. (the "Investment Manager").
The following is a summary of significant accounting policies:
A. Valuation of Investments -- Portfolio securities are valued for the Trust by an outside independent pricing
service approved by the Trustees. The pricing service has informed the Trust that in valuing the Trust's portfolio
securities, it uses both a computerized grid matrix of tax-exempt securities and evaluations by its staff, in each
case based on information concerning market transactions and quotations from dealers which reflect the bid side
of the market each day. The Trust's portfolio securities are thus valued by reference to a combination of
transactions and quotations for the same or other securities believed to be comparable in quality, coupon,
maturity, type of issue, call provisions, trading characteristics and other features deemed to be relevant.
B. Accounting for Investments -- Security transactions are accounted for on the trade date (date the order to buy
or sell is executed). In computing net investment income, the Trust amortizes premiums and original issue
discounts on fixed income securities. Additionally, with respect to market discount on bonds, a portion of any
capital gain realized upon disposition is recharacterized as taxable investment income. Realized gains and losses
on security transactions are determined on the identified cost method. Interest income is accrued daily.
C. Federal Income Tax Status -- It is the Trust's policy to comply with the req