Assets are listed on the balance sheet in order of
A)decreasing liquidity.
B)increasing size and relative life.
C)decreasing size.
D)relative life.

Question

Quizplus · Accepted Answer

Assets are listed on the balance sheet in order of decreasing liquidity, meaning that the most liquid assets (such as cash and short-term investments) are listed first and the least liquid assets (such as property, plant, and equipment) are listed last. This order is helpful for investors and creditors to understand the availability of a company's assets for potential use in operating activities or debt repayment.

Assets Are Listed on the Balance Sheet in Order of