Indicate the order that the following current assets should be listed in the balance sheet.
I Accounts receivable
II Bank
III Stock of stationery
IV Prepaid expenses
A) I, II, III, IV
B) II, III, I, IV
C) II, I, III, IV
D) III, II, I, IV

Question

Quizplus · Accepted Answer

Bank usually comes first as it is the most liquid asset, followed by accounts receivable, as they are considered less liquid than the bank. Next should be stock of stationery as it is an inventory that will eventually be sold and turned into cash, and prepaid expenses should come last as they are considered the least liquid of the current assets. Therefore, the correct order is II, I, III, IV, which is only present in choice C.

Indicate the Order That the Following Current Assets Should Be