The assets section of the balance sheet normally presents assets in
A) alphabetical order
B) order of largest to smallest dollar amounts
C) in the order that they will be converted into cash or used in operations
D) any order

Question

Quizplus · Accepted Answer

The assets section of the balance sheet is typically arranged in order of liquidity, which means that assets are presented in the order in which they will be converted into cash or used in operations. This helps provide insight into the company's ability to meet its short-term obligations, and is therefore the most logical way to present assets on the balance sheet. Ordering assets alphabetically or by dollar amount would not provide as much useful information. Choosing "any order" would be confusing and not helpful for readers trying to understand the financial position of the company.

The Assets Section of the Balance Sheet Normally Presents Assets