Assets Are Listed on the Balance Sheet in Order of Liquidity.Which

question 156

Multiple Choice

Assets are listed on the balance sheet in order of liquidity.Which of the following items reflects the normal order of liquidity?

• A) Cash, Inventory, Notes receivable, Accounts receivable
• B) Notes Receivable, Inventory, Accounts receivable, Cash
• C) Cash, Accounts receivable, Inventory, Notes receivable
• D) Plant assets, Inventory, Notes receivable, Cash

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Definitions:

Unequal Portions

Divisions or allocations of a whole into parts that are not of equal size or value.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often influenced by judgment, reasoning, and preferences.

Symbols

Representations of objects, concepts, or relationships in various forms such as language, mathematics, and art, used for communication and understanding.

Complex Molecules

Substances formed from the bonding of two or more chemical elements, where at least one of these bonds involves the sharing of electrons.