Asset accounts on the balance sheet are listed in order of
A) liquidity.
B) profitability.
C) dollar amount.
D) importance.

Question

Quizplus · Accepted Answer

The asset accounts on the balance sheet are listed in order of liquidity, which means how quickly they can be converted into cash. The most liquid assets are listed first, such as cash and short-term investments, while the least liquid assets are listed last, such as property, plant and equipment. This order helps investors and analysts assess a company's ability to meet its short-term obligations.

Asset Accounts on the Balance Sheet Are Listed in Order