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Assets are listed on the balance sheet in order of increasing size and relative life. decreasing size. relative life. decreasing liquidity.a. increasing size and relative life.b. decreasing size.c. relative life.d. decreasing liquidity. Solution Liquidity of the the assets means how quick an asset can be converted to cash. More quicker it can be higher the liquidity. Standard format of balance states assets to be reported on the basis of their liquidity. Assets with highest liquidity should be reported on Top Therefore in Assets we report first current assets and then PPE. Even in Current assets we report Cash and Marketable securities (most liquid aset) on top. There fore Assets are listed on the balance sheet in order of decreasing liquidity.d. decreasing liquidity..

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Assets are listed on the balance sheet in order of increasing size and relative life. decreasing size. relative life. decreasing liquidity.a. increasing size and relative life.b. decreasing size.c. relative life.d. decreasing liquidity. Solution Liquidity of the the assets means how quick an asset can be converted to cash. More quicker it can be higher the liquidity. Standard format of balance states assets to be reported on the basis of their liquidity. Assets with highest liquidity should be reported on Top Therefore in Assets we report first current assets and then PPE. Even in Current assets we report Cash and Marketable securities (most liquid aset) on top. There fore Assets are listed on the balance sheet in order of decreasing liquidity.d. decreasing liquidity.

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Assets are listed on the balance sheet in order ofincreasing size .pdf

  • 1. Assets are listed on the balance sheet in order of increasing size and relative life. decreasing size. relative life. decreasing liquidity.a. increasing size and relative life.b. decreasing size.c. relative life.d. decreasing liquidity. Solution Liquidity of the the assets means how quick an asset can be converted to cash. More quicker it can be higher the liquidity. Standard format of balance states assets to be reported on the basis of their liquidity. Assets with highest liquidity should be reported on Top Therefore in Assets we report first current assets and then PPE. Even in Current assets we report Cash and Marketable securities (most liquid aset) on top. There fore Assets are listed on the balance sheet in order of decreasing liquidity.d. decreasing liquidity.