Current assets are presented in the balance sheet in
A) ascending order of their balances.
B) descending order of their balances.
C) order of their liquidity.
D) reverse order of their liquidity.

Question

Quizplus · Accepted Answer

The balance sheet presents assets in order of their liquidity, meaning that assets that can be easily converted into cash are listed first, followed by assets that may take longer to convert to cash. This is because assets that can be easily converted into cash are more readily available to pay off short-term liabilities. Therefore, the correct answer is C.

Current Assets Are Presented in the Balance Sheet in