In which order will assets be listed in a balance sheet?
A)In ascending order of the value of the asset
B)In alphabetical order
C)In ascending order of the date of purchase of asset
D)In order of liquidity
E)In order of importance for the company

Question

Quizplus · Accepted Answer

Assets are listed in order of liquidity, meaning the most liquid assets (those that can easily be converted into cash) are listed first. This makes it easier for readers to assess the company's ability to meet its short-term obligations.

In Which Order Will Assets Be Listed in a Balance