Assets and liabilities are listed in the balance sheet in order of:
A) marketability.
B) liquidity.
C) tangibility.
D) profitability.

Question

Quizplus · Accepted Answer

Assets and liabilities are listed in the balance sheet in order of liquidity, which means how quickly and easily they can be converted into cash or used to pay off debts. This ordering allows investors and analysts to get a sense of the company's ability to meet its financial obligations and cover its short-term expenses. Marketability, tangibility, and profitability are not factors used in determining the order of listing in the balance sheet.

Assets and Liabilities Are Listed in the Balance Sheet in Order