Current assets are listed in a particular order. What is the listing order based on?
A) value
B) net worth
C) liquidity
D) life span

Question

Quizplus · Accepted Answer

The listing order of current assets is based on their liquidity, which means the ease of converting them into cash. Current assets that are most easily converted to cash are listed first, followed by those that may take longer to convert. This helps businesses understand the amount of cash they can expect to have on hand in the short-term.

Current Assets Are Listed in a Particular Order