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Question 17 of 20
In the balance sheet, assets are listed by
A. the importance of the asset
B. the order of liquidity
C. their date or purchase
D. the value of the asset

Verified Answer :

GinnyAnswer

Final answer:

In a balance sheet, assets are listed based on their liquidity, with the most liquid assets at the top.


Explanation:

Assets in a balance sheet are listed by the order of liquidity. This means that the most liquid assets, such as cash, are placed at the top, while the least liquid assets are placed towards the bottom. Liquidity refers to how quickly an asset can be converted to cash with minimal loss in value. For example, cash equivalents like commercial paper and marketable securities are highly liquid.


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