The usual order for the asset subgroups of a classified balance sheet is:
A) Current assets, long-term investments, plant assets, intangible assets.
B) Plant assets, intangible assets, long-term investments, current assets.
C) Intangible assets, current assets, long-term investments, plant assets.
D) Current assets, prepaid expenses, long-term investments, intangible assets.
E) Long-term investments, current assets, plant assets, intangible assets.

Question

Quizplus · Accepted Answer

The typical order for asset subgroups in a classified balance sheet is to list them in order of liquidity - assets that are more easily converted to cash should be listed first. This means that current assets (those expected to be converted to cash within one year) are listed first, followed by long-term investments, plant assets, and intangible assets. Therefore, Option A is the correct order.

The Usual Order for the Asset Subgroups of a Classified