The correct order to present current assets is
A) cash, accounts receivable, prepaid items, inventories.
B) cash, accounts receivable, inventories, prepaid items.
C) cash, inventories, accounts receivable, prepaid items.
D) cash, inventories, prepaid items, accounts receivable.

Question

Quizplus · Accepted Answer

The correct order to present current assets in the balance sheet is: cash, accounts receivable, inventories, and then prepaid items. This order follows the liquidity order, from the most liquid assets (cash) to the least liquid of the current assets listed (prepaid items).

The Correct Order to Present Current Assets Is