Arrange the following assets in the order of liquidity in a balance sheet 1. cash in hand 2. Debtors 3. Furniture 4. Land
Answers
,The assets and the liabilities must be marshalled properly based on the requirement. There are two ways of presenting the assets and liabilities of the business.
,The assets and the liabilities must be marshalled properly based on the requirement. There are two ways of presenting the assets and liabilities of the business.Order of Liquidity: According to this, assets are arranged in the order of ease with which they can be converted in to cash and liabilities in the order in which they are to be discharged.
,The assets and the liabilities must be marshalled properly based on the requirement. There are two ways of presenting the assets and liabilities of the business.Order of Liquidity: According to this, assets are arranged in the order of ease with which they can be converted in to cash and liabilities in the order in which they are to be discharged.
,The assets and the liabilities must be marshalled properly based on the requirement. There are two ways of presenting the assets and liabilities of the business.Order of Liquidity: According to this, assets are arranged in the order of ease with which they can be converted in to cash and liabilities in the order in which they are to be discharged.