Given the Following Assets;

question 42

Multiple Choice

Given the following assets;
I. Long-term assets
II. Inventories
III. Receivables
IV. Marketable securities
Arrange the above assets in the order of liquidity. (The most liquid being first)

• A) I, II, III and IV
• B) II, III, IV and I
• C) III, IV, II, and I
• D) IV, III, II and I

---

Definitions:

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the debit and credit effects.

Interest Expense

Costs incurred by an entity for borrowed funds, which are typically reported on the income statement within the financing or operating sections.

Notes Payable

A written promise to pay a specified amount of money, typically with interest, by a certain date, recorded as a liability on the balance sheet.

Cash

Refers to currency or assets that can rapidly be converted to currency, used by businesses for transactions and considered a current asset on the balance sheet.