Assets are listed on the balance sheet in order of liquidity and liabilities are listed in order of maturity.

Question

Quizplus · Accepted Answer

Assets on a balance sheet are indeed listed in order of liquidity, starting with the most liquid assets like cash and accounts receivable, and moving towards less liquid assets like inventory and fixed assets. Similarly, liabilities are listed in order of their maturity, beginning with short-term liabilities that are due within a year, and progressing to long-term liabilities that are due in more than a year.

Assets Are Listed on the Balance Sheet in Order of Liquidity