Current assets under GAAP are listed generally
A) alphabetically.
B) by order of liquidity.
C) in the reverse order of their expected conversion to cash.
D) by importance.

Question

Quizplus · Accepted Answer

Current assets are listed in order of liquidity, which means that they are arranged based on how quickly they can be converted into cash. This order provides valuable information to investors and creditors, who can use it to assess a company's ability to meet its short-term obligations. Arranging current assets alphabetically, in reverse order of expected conversion to cash, or by importance would not provide this important information.

Current Assets Under GAAP Are Listed Generally