Assets are listed on the balance sheet in order of:
A) decreasing liquidity.
B) decreasing size.
C) increasing size.
D) relative life.
E) None of these.

Question

Quizplus · Accepted Answer

Assets are typically listed on the balance sheet in order of decreasing liquidity, with the most liquid assets (such as cash) listed first, followed by assets that are less liquid (such as inventory or property). This order helps investors and creditors understand how easily the company can convert its assets into cash if needed.

Assets Are Listed on the Balance Sheet in Order Of