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 are listed on the statement of financial position in order of decreasing liquidity, which means that assets that can be easily converted into cash are listed first, followed by assets that are more difficult to convert into cash. This order helps users of the financial statements understand the availability of a company's resources to meet its obligations.

Assets Are Listed on the Statement of ﬁNancial Position In