Question

In what order are current assets listed on a balance sheet?

Answer 1

1. By dollar amount (largest first).
2. By date of acquisition (earliest first).
3. By relevance to the operation of the business.
4. By liquidity.

Answer d. By liquidity

Explanation: The common order where current assets that appear on the balance sheet are cash (petty cash, cash, and checking accounts), short-term investments, prepaid expenses, supplies, inventories, accounts receivables, and marketable securities.