FASB recommends that assets and liabilities with differing liquidities be arranged as separate items.

Question

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This statement is true. FASB (Financial Accounting Standards Board) recommends that assets and liabilities with differing liquidities should be arranged as separate items in financial statements to provide a more accurate view of the company's financial health. This helps users of financial statements to better understand the company's ability to meet its short-term and long-term obligations.

FASB Recommends That Assets and Liabilities with Differing Liquidities Be