A balance sheet prepared according to U.S.GAAP lists assets from most liquid to least liquid, where liquid refers to the ease of converting the asset into cash.

Question

Quizplus · Accepted Answer

This statement is true. The assets are generally listed in order of liquidity, with the most liquid assets, such as cash and short-term investments, listed first, followed by accounts receivable, inventory, and fixed assets.

A Balance Sheet Prepared According to U