On the statement of financial position,how are assets and liabilities normally presented?
A)Assets are presented in their order of permanence;liabilities are presented in the order in which they become due.
B)Assets are presented in the order in which they become due;liabilities are presented in their order of permanence.
C)Assets are presented in order of profitability;liabilities are presented in order of liquidity.
D)Assets are presented in order of liquidity;liabilities are presented in order of profitability.

Question

Quizplus · Accepted Answer

Assets on the statement of financial position are typically listed in order of permanence (from most permanent to least), such as starting with non-current assets and moving to current assets. Liabilities are listed in the order they are due to be settled, starting with current liabilities (due within one year) and followed by non-current liabilities.

On the Statement of Financial Position,how Are Assets and Liabilities