Under U.S.GAAP, assets and liabilities in the balance sheet appear in order of
A)decreasing closeness-to-cash.
B)increasing closeness-to-cash.
C)alphabetical order.
D)numerical order.
E)all of the above.

Question

Quizplus · Accepted Answer

Under U.S.GAAP, assets and liabilities in the balance sheet are generally ordered based on their decreasing closeness-to-cash, with more liquid assets and more current liabilities appearing first. This helps users of financial statements to better understand the company's liquidity and solvency.

Under USGAAP, Assets and Liabilities in the Balance Sheet Appear in in Order