The Conventional Way of Preparing a Balance Sheet Is to List

question 41

Multiple Choice

The conventional way of preparing a balance sheet is to list all assets in the order of their:

• A) market value.
• B) risk.
• C) liquidity.
• D) historical cost.

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Definitions:

Property

Assets or possessions owned by an individual or company, encompassing both tangible and intangible assets.

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence and can have its cost spread out over its useful life for accounting purposes.