Which of the following would not be an acceptable method of presenting current liabilities on the balance sheet?
A)alphabetically
B)in order of their average time to maturity
C)in order of their liquidation preference
D)in order of their amount (largest to smallest)

Question

Quizplus · Accepted Answer

Presenting current liabilities alphabetically is not an acceptable method because it does not provide useful information regarding the timing or significance of the liabilities. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) prefer that liabilities be presented in a manner that reflects their liquidity or maturity, helping users of financial statements understand the company's obligations and financial position better.

Which of the Following Would Not Be an Acceptable Method