The normal order for the asset section of a classified balance sheet is
A) Current assets, prepaid expenses, long-term investments, intangible assets
B) Long-term investments, current assets, property, plant and equipment, intangible assets
C) Current assets, long-term investments, property, plant and equipment, intangible assets
D) Intangible assets, current assets, long-term investments, property, plant and equipment
E) Property, plant and equipment, intangible assets, long-term investments, current assets

Question

Quizplus · Accepted Answer

The normal order for the asset section of a classified balance sheet is current assets first, then long-term investments, followed by property, plant and equipment, and finally intangible assets. This order reflects the general liquidity of assets, with the most liquid assets listed first.

The Normal Order for the Asset Section of a Classified