Assets are listed on the statement of financial position in:
A) Order of importance to the firm.
B) Order of increasing size.
C) Order of decreasing liquidity.
D) No particular order.
E) Order of preference in bankruptcy.

Question

Quizplus · Accepted Answer

Assets on the statement of financial position (balance sheet) are listed in order of decreasing liquidity, meaning the most liquid assets (e.g., cash) are listed first, and less liquid assets (e.g., property, plant, and equipment) are listed later.

Assets Are Listed on the Statement of Financial Position In