In what order are current assets usually reported on the statement of financial position?
A) From the least liquid to the most liquid.
B) From the most liquid to the least liquid.
C) From the largest balance to the smallest balance.
D) In alphabetical order of accounts.

Question

Quizplus · Accepted Answer

Current assets are usually reported in order of liquidity, meaning those assets that can be quickly and easily converted into cash are listed first. This allows investors and creditors to assess the company's ability to meet its short-term obligations.

In What Order Are Current Assets Usually Reported on the Statement