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.

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Definitions:

Unlimited Liability

A legal obligation in business where owners are personally responsible for all debts of the business, extending to their personal assets.

Limited Liability

A legal structure that protects business owners' personal assets from company debts and liabilities.