The Order of Current Assets on the Balance Sheet Is

question 95

Multiple Choice

The order of current assets on the balance sheet is:

• A)cash, accounts receivable, short-term investments.
• B)cash, inventory, accounts receivable.
• C)cash, short-term investments, accounts receivable.
• D)short-term investments, cash, accounts receivable.

Apply formulas to determine current ratio and acid-test ratio.

Assess the impact of inventory and accounts receivable management on liquidity and operational efficiency.

Identify financial strategies to improve liquidity and financial stability.

Evaluate company performance using inventory and accounts receivable turnover ratios.

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Definitions:

Complement

In probability and statistics, it refers to the event of something not happening, the counterpart to the occurrence of a specific event.

Independent

Two events are independent if the occurrence of one does not affect the probability of the occurrence of the other.

Independent

Refers to a characteristic where two events have no influence on each other's occurrence.

Mutually Exclusive

Two or more events that cannot occur at the same time.