Which of the following is the proper order to list current assets on the balance sheet?
A)Cash, short term investments, inventory, prepaid expenses
B)Cash, short-term investments, prepaid expenses, accounts receivable
C)Cash, inventory, accounts receivable, short-term investments
D)Cash, accounts receivable, short-term investments, inventory

Question

Quizplus · Accepted Answer

The proper order to list current assets on a balance sheet, according to the liquidity order (from most liquid to least liquid), is: Cash, Short-term investments, Accounts receivable, Inventory, Prepaid expenses. Option A correctly lists these items in the order of their liquidity, starting with cash (most liquid) and ending with prepaid expenses (least liquid among the options given).

Which of the Following Is the Proper Order to List