Current Assets Are Listed in the Order of Liquidity

question 113

True/False

Current assets are listed in the order of liquidity.

---

Definitions:

Compounded Semiannually

A method of calculating interest where the interest is added to the principal amount twice a year, leading to interest earning interest over time.

Compounded Annually

A method of calculating interest where the interest is added to the principal sum each year, thus each subsequent interest calculation is made on an increased principal.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Future Value

The amount of money an investment is expected to be worth in the future, considering interest or capital gains.