Regarding a classified balance sheet,which of the following statements is correct?
A) Accounts are classified by their purchase dates.
B) Account balances are listed from the highest amount to the lowest amount.
C) Assets are listed in the order of their liquidity.
D) Assets are listed in alphabetical order.

Question

Quizplus · Accepted Answer

A classified balance sheet lists assets in order of their liquidity, meaning the assets that can be converted to cash most quickly are listed first. This helps give a clearer picture of a company's financial position and ability to meet short-term obligations. Accounts are not classified by purchase dates, and balances are not listed in any particular order. Assets are not listed alphabetically.

Regarding a Classified Balance Sheet,which of the Following Statements Is