Assets are listed on the statement of ﬁnancial position in order of:
A)decreasing liquidity.
B)decreasing size.
C)increasing size.
D)relative life.
E)None of the above.

Question

Quizplus · Accepted Answer

Assets are listed on the statement of financial position in order of decreasing liquidity, meaning the most liquid assets (such as cash and accounts receivable) are listed first, followed by less liquid assets (such as property, plant, and equipment). This order provides useful information for investors and creditors to assess the company's ability to meet its short-term obligations.

Assets Are Listed on the Statement of ﬁNancial Position in Order