In what order are current assets usually reported on the statement of financial position?

Question

Quizplus · Accepted Answer

Current assets are usually reported on the statement of financial position in order of their liquidity, with the most liquid assets listed first. This is because the purpose of the statement of financial position is to provide information about an entity's ability to meet its short-term obligations. By listing the most liquid assets first, readers of the statement can quickly assess the entity's ability to pay its debts as they become due.

In What Order Are Current Assets Usually Reported on the Statement