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

Question

Quizplus · Accepted Answer

Assets are generally listed on the balance sheet in order of decreasing liquidity, meaning how quickly they can be converted to cash. This allows users of the financial statements to better understand the company's ability to pay its debts and obligations in the short term.

Assets Are Listed on the Balance Sheet in Order Of