Which of the following sequences states the order in which accounts are listed on a trial balance?
A) Equity → Assets → Liabilities
B) Liabilities → Assets → Equity
C) Assets → Equity → Liabilities
D) Assets → Liabilities → Equity

Question

Quizplus · Accepted Answer

The usual order for a trial balance is to list the assets first, then the liabilities, and finally the equity. This is because assets are typically listed in order of their liquidity, meaning how easily they can be converted into cash. Meanwhile, liabilities are usually listed in order of when they are due, and equity represents the residual value of assets after liabilities have been paid off. Therefore, the correct sequence is Assets → Liabilities → Equity, which is given in choice D.

Which of the Following Sequences States the Order in Which