Assets are listed on the balance sheet in order of:
I.decreasing liquidity;
II.decreasing size;
III.increasing size;
IV.relative life
A)I only
B)III and IV only
C)II only
D)IV only

Question

Quizplus · Accepted Answer

Assets are generally listed in order of decreasing liquidity on the balance sheet. This means that the assets that can be easily converted into cash, such as cash and cash equivalents, are listed first, followed by short-term investments, accounts receivable, inventory, and so on. This order reflects the ease with which these assets can be turned into cash and used to meet the company's obligations.

Assets Are Listed on the Balance Sheet in Order Of