Question

What is the order of permanence in accounting?

Answer 1

Order of permanence in accounting is the order of arranging assets in order of their permanency, i.e. assets that are most permanent are shown first and least permanent assets are shown last.

Similarly, long term liabilities are shown first and current liabilities are shown last.

Also read:

• Marshalling of Assets and Liabilities
• Accounting MCQs
• What Is the Balance Sheet Equation
• Balance Sheet Vs Consolidated Balance Sheet

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