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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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