Question

Arrange the following assets in the order of permanence. (Machinery, Cash at bank, Bills Receivables, Goodwill)​

Answer 1

Answer:

Machinery

Goodwill

Bills receivable

Cash at bank

Answer 2

Answer:

Explanation:

The affinity of an asset is the duration of the asset to stay with the organisation or the longevity of the life of an asset with the organisation. The longer the asset stays with an organisation, the more permanence it has. The asset with highest permanence is placed first and the asset with least permanence is placed last. the correct order of the assets as per permanence order is

• Good will
• Machinery
• Bills receivable
• Cash at bank