Because cash is the least liquid current asset it is listed last in the current assets section of the statement of financial position.

Question

Quizplus · Accepted Answer

Cash is actually listed first in the current assets section of the statement of financial position. This is because it is the most liquid current asset, meaning it can be quickly and easily converted to cash without significant loss of value. Other current assets that are less liquid, such as inventory or prepaid expenses, are listed after cash.

Because Cash Is the Least Liquid Current Asset It Is