Which of the following is the most appropriate way to display liabilities on the balance sheet?
A) nearness to maturity
B) relative likelihood of payment
C) alphabetically by payee
D) all of the above

Question

Quizplus · Accepted Answer

Liabilities should be displayed in order of nearness to maturity, with the shortest-term liabilities listed first. This is because short-term liabilities require payment in the near future, and thus are more immediately relevant to the company's financial health. Displaying liabilities alphabetically by payee or by relative likelihood of payment is not as relevant to understanding the company's financial obligations.

Which of the Following Is the Most Appropriate Way to Display