The order in which current assets are typically listed is:
A)accounts receivable,inventory,cash and cash equivalents,prepaid expenses.
B)cash and cash equivalents,accounts receivable,prepaid expenses,inventory.
C)cash and cash equivalents,accounts receivable,inventory,prepaid expenses.
D)prepaid expenses,cash and cash equivalents,accounts receivable,inventory.

Question

Quizplus · Accepted Answer

Cash and cash equivalents are usually listed first as they are the most liquid assets. Accounts receivable are listed next as they represent amounts owed by customers to the company. Inventory is typically listed third as it is a less liquid asset than cash and accounts receivable. Prepaid expenses are listed last as they represent expenses paid in advance, which are not likely to be converted into cash in the short term.

The Order in Which Current Assets Are Typically Listed Is