Kim's Copy Shop is in the process of organizing its assets in the appropriate order. They ask you for help in arranging the following assets: equipment, accounts receivable, cash, merchandise inventory, and notes receivable. You list ____ first and ____ last.
A)merchandise inventory; notes receivable
B)accounts receivable; equipment
C)notes receivable; accounts receivable
D)equipment; accounts receivable
E)cash; equipment

Question

Quizplus · Accepted Answer

Cash should be listed first as it is the most liquid asset and can be easily converted into other forms of assets. Equipment should be listed last as it is the least liquid asset and cannot be easily converted into cash. The correct order is: Cash, Accounts Receivable, Notes Receivable, Merchandise Inventory, Equipment.

Kim's Copy Shop Is in the Process of Organizing Its