On the Assets Side of the Balance Sheet, what is the usual way of listing the format or order of items

As discussed in earlier article, a balance sheet reflects the financial position of a business as at a certain point of time. It lists all liabilities and assets of a business.

Below is the usual way to list the Assets items in the balance sheet :

(a)    Fixed asets

  • Listed in order of LENGTH OF USEFUL LIFE so that land and buildings would usually lead the list

(b)   Current assets

  • Listed in descending order of LIQUIDITY  meaning that those current assets that are expected to take longest to convert into cash will be listed first re: usually stocks followed by debtors

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