Which of the following statements is true?
A)Current liabilities are generally presented on the statement of financial position in order of liquidity, but IFRS allows presentation in reverse order of liquidity as well.
B)Current liabilities are listed in order of descending dollar value.
C)All companies are prohibited to report current liabilities in reverse order of liquidity.
D)Current liabilities are listed in order of ascending dollar value.

Question

Quizplus · Accepted Answer

Current liabilities are typically presented on the statement of financial position in order of liquidity. However, IFRS does permit the presentation in reverse order of liquidity, offering flexibility in how financial statements are organized.

Which of the Following Statements Is True