Petra, Inc., has $400,000 as current assets, $1.225 million as 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

The assets should be listed in the order of liquidity, with current assets first, followed by plant and equipment. Goodwill is not a tangible asset and should not be listed as a separate line item on the balance sheet. Therefore, the correct order is current assets, plant and equipment, and then any intangible assets (such as goodwill) should be included in the total assets line item.