The assets section of the balance sheet normally presents assets in

A) alphabetical order
B) the order of largest to smallest dollar amounts
C) the order in which they will be converted into cash or used in operations
D) the order of smallest to largest dollar amounts

Question

Chino Pizarro · Accepted Answer

Final Answer : C, Explanation :  The assets section of the balance sheet is typically presented in the order of liquidity, which means that assets are listed in the order in which they can be easily converted to cash or used in the company's operations. This order reflects the relative ease with which each asset can be accessed and used to generate cash flow, which is a key consideration for investors and stakeholders when evaluating a company's financial health. Alphabetical or dollar amount order may not provide meaningful information about the company's liquidity position.

The assets section of the balance sheet normally presents assets in

A) alphabetical order
B) the order of largest to smallest dollar amounts
C) the order in which they will be converted into cash or used in operations
D) the order of smallest to largest dollar amounts

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Learning Objectives

Related questions

The assets section of the balance sheet normally presents assets inA) alphabetical orderB) the order of largest to smallest dollar amountsC) the order in which they will be converted into cash or used in operationsD) the order of smallest to largest dollar amounts

Definitions

Learning Objectives

Learning Objectives

Related questions

The assets section of the balance sheet normally presents assets in

A) alphabetical order
B) the order of largest to smallest dollar amounts
C) the order in which they will be converted into cash or used in operations
D) the order of smallest to largest dollar amounts