On a classified balance sheet current assets are customarily listed

A) in alphabetical order.
B) with the largest dollar amounts first.
C) in the order of liquidity.
D) in the order of acquisition.

Question

On a classified balance sheet current assets are customarily listedA)  in alphabetical order.B)  with the largest dollar amounts first.C)  in the order of liquidity.D)  in the order of acquisition.

brianna johnson · Accepted Answer

Final Answer : C, Explanation :  Current assets are usually listed in the order of liquidity, meaning the most liquid assets (assets that can be easily converted to cash) are listed first. This helps readers of the balance sheet quickly identify the company's most liquid assets.

On a classified balance sheet current assets are customarily listed

A) in alphabetical order.
B) with the largest dollar amounts first.
C) in the order of liquidity.
D) in the order of acquisition.

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