Henderson, Inc. owns land worth $800,000 and has $180,000 worth of cash in its bank account. In the asset section of the balance sheet, Henderson lists its land holdings prior to listing its cash since it is a higher value.

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A balance sheet lists assets in order of liquidity-i.e., how easily and quickly they can be converted into cash. The most liquid assets are called current assets, and they are listed first on the balance sheet. Obviously, cash is the most liquid asset of all. Land is not considered a liquid asset because it usually takes a significant amount of time and paperwork to sell it and collect the cash proceeds.