Which of the Following Presents the Proper Ordering of Assets

question 47

Multiple Choice

Which of the following presents the proper ordering of assets, liabilities and equities on the statement of financial position used by some countries that is different from the U.S.?

• A) current assets, long-term assets, current liabilities
• B) inventories, trade-receivables, cash
• C) assets, liabilities, equities
• D) current liabilities, long-term liabilities, equities

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Definitions:

Solvent

A substance, typically a liquid, capable of dissolving other substances to form a solution.

Water

A colorless, tasteless, and odorless substance essential for most plant and animal life and the most widely used solvent.

Solvent

A substance, typically a liquid, capable of dissolving other substances (solutes) to form a solution.

Solute

A material that is dissolved within another material, usually forming the smaller proportion of a solution.