assets in a balance sheet are usually arranged in the order of their_
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It could be order of permanence.
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In a balance Sheet, the Assets & Liabilities are shown in a grouping or order of sequence. This is known as Marshalling of Assets & Liabilities.
Marshalling means grouping or arrangement of Assets and Liabilities in a sequence of order in the balance sheet. We can arrange it Assets & Liabilities in two ways :-
i) As per liquidity :-
Liquidity means which can be easily converted into cash. For example:- Cash, Bank Balance, Stock, Current Liabilities & Assets.
ii) As per Permanency :-
Permanency means which can be returned in a business for long period of time. i.e., For more that 1 year, for example:- Capital, Bank loan, Fixed Assets, long term liability.
Marshalling means grouping or arrangement of Assets and Liabilities in a sequence of order in the balance sheet. We can arrange it Assets & Liabilities in two ways :-
i) As per liquidity :-
Liquidity means which can be easily converted into cash. For example:- Cash, Bank Balance, Stock, Current Liabilities & Assets.
ii) As per Permanency :-
Permanency means which can be returned in a business for long period of time. i.e., For more that 1 year, for example:- Capital, Bank loan, Fixed Assets, long term liability.
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