Assets are listed on the balance sheet in order of:
A)decreasing liquidity.
B)decreasing size.
C)increasing size.
D)relative life.
E)None of the above.

Question

Quizplus · Accepted Answer

Assets are typically listed on the balance sheet in order of decreasing liquidity, meaning the assets that can most quickly and easily be converted into cash are listed first, followed by the less liquid assets. This allows investors and creditors to quickly assess the company's ability to pay its debts and meet its financial obligations.

Assets Are Listed on the Balance Sheet in Order Of