In What Order Are Current Liabilities Typically Listed on the Statement

question 284

Multiple Choice

In what order are current liabilities typically listed on the statement of financial position?

• A) In order of the dates they become due.
• B) In order of increasing liquidity.
• C) In order of decreasing liquidity.
• D) Notes Payable first followed by Accounts Payable, then in order of magnitude.

---

Definitions:

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.

Erosion

Erosion is the natural process by which soil, rock, and other surface material are worn away and transported by natural forces, such as water or wind.

Condense

To reduce something, such as a text or statement, to make it shorter, while retaining the essential information or to change the physical state of a substance from gas to liquid.

Precipitation

The process by which water in the form of rain, snow, sleet, or hail falls from the atmosphere to the Earth's surface.