Which of the following statements is TRUE of the order in which assets are listed in the balance sheet?
A) Assets such as property and plant are mentioned first in a balance sheet.
B) Fixed assets are listed before current assets in a balance sheet.
C) Current assets are not generally mentioned in a balance sheet.
D) Assets are listed in descending order by liquidity in the balance sheet.
E) Current and fixed assets are listed in no particular order in a balance sheet.

Question

Quizplus · Accepted Answer

A)In a balance sheet, assets are listed in descending order by liquidity, or the ease with which they can be converted into cash. Thus, current assets are listed before fixed assets.
B)In a balance sheet, assets are listed in descending order by liquidity, or the ease with which they can be converted into cash. Thus, current assets are listed before fixed assets.
C)In a balance sheet, assets are listed in descending order by liquidity, or the ease with which they can be converted into cash. Thus, current assets are listed before fixed assets.
D)In a balance sheet, assets are listed in descending order by liquidity, or the ease with which they can be converted into cash. Thus, current assets are listed before fixed assets.
E)In a balance sheet, assets are listed in descending order by liquidity, or the ease with which they can be converted into cash. Thus, current assets are listed before fixed assets.

Which of the Following Statements Is TRUE of the Order