An entity is required to classify its assets and liabilities as current or non-current unless it is considered more relevant to present them according to their:
A)value
B)liquidity
C)age
D)physical nature.

Question

Quizplus · Accepted Answer

Assets and liabilities are typically classified as current or non-current based on their liquidity, or the ease with which they can be converted into cash. This is because the classification provides helpful information about an entity's short-term financial position and ability to meet its obligations. While value, age, and physical nature may be relevant in certain contexts, they are not as universally informative as liquidity for asset and liability classification.

An Entity Is Required to Classify Its Assets and Liabilities