Petra Ltd has $400,000 as current assets, $1.225 million as property, plant and equipment, and $250,000 as goodwill. In preparing the balance sheet, these assets should be listed in which of the following orders?

Question

Quizplus · Accepted Answer

When preparing a balance sheet, assets are generally listed in order of liquidity. This means that current assets should come first, followed by property, plant and equipment, and then any other non-current assets such as goodwill. Therefore, the correct order for Petra Ltd's assets would be current assets ($400,000), property, plant and equipment ($1.225 million), and goodwill ($250,000). This corresponds to answer choice B.

Petra Ltd Has $400,000 as Current Assets, $1