| 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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