Which one of the following statements concerning the balance sheet is correct?
A)Total assets equal total liabilities minus total equity.
B)Net working capital is equal total assets minus total liabilities.
C)Assets are listed in descending order of liquidity.
D)Current assets are equal to total assets minus net working capital.
E)Shareholders' equity is equal to net working capital minus net fixed assets plus long-term debt.

Question

Quizplus · Accepted Answer

Assets on a balance sheet are listed in descending order of liquidity, meaning the most liquid assets, like cash, are listed first, followed by less liquid assets.

Which One of the Following Statements Concerning the Balance Sheet