The Normal Order for the Asset Section of a Classified

question 22

Multiple Choice

The normal order for the asset section of a classified balance sheet is

• A) Current assets, prepaid expenses, long-term investments, intangible assets
• B) Long-term investments, current assets, property, plant and equipment, intangible assets
• C) Current assets, long-term investments, property, plant and equipment, intangible assets
• D) Intangible assets, current assets, long-term investments, property, plant and equipment
• E) Property, plant and equipment, intangible assets, long-term investments, current assets

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Definitions:

Jointly Exhaustive

This term refers to a set of possibilities or conditions that completely covers all potential outcomes or scenarios, leaving no option unaccounted for.

Abstract

Existing in thought or as an idea but not having a physical or concrete existence.

Concepts

Cognitive units of meaning that are abstract, generalized ideas or categories representing objects, qualities, or relations.

Referents

Objects or concepts in the world that words or phrases stand for or represent in language and thought.