The order in which assets were listed and described in the text is the order in which you will see them listed on the balance sheet . What is the organizing principle behind the order in which assets are listed?

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 2, Problem 1DQ

The order in which assets were listed and described in the text is the order in which you will see them listed on the balance sheet. What is the organizing principle behind the order in which assets are listed?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is the return on equity for Firm X and Firm Y ?

General accounting

What differentiates process-based validation from outcome testing? (A) Systematic review steps assess control effectiveness (B) Final results alone matter (C) Process review wastes time (D) Outcomes tell complete story

Answer 2

Textbook Question

Chapter 2, Problem 1DQ

The order in which assets were listed and described in the text is the order in which you will see them listed on the balance sheet. What is the organizing principle behind the order in which assets are listed?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 2, Problem 1DQ

The order in which assets were listed and described in the text is the order in which you will see them listed on the balance sheet. What is the organizing principle behind the order in which assets are listed?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 2, Problem 1DQ

The order in which assets were listed and described in the text is the order in which you will see them listed on the balance sheet. What is the organizing principle behind the order in which assets are listed?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution & Answer

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Answer 8

Expert Solution & Answer

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Explain the organizing principle behind the listing of assets on the balance sheet.

Answer 12

Explanation of Solution

Asset:

Assets refer to the resources owned by the business, which are utilized in the course of the business to generate revenue.

The organizing principle behind in the listing of assets on the balance sheet as follows:

At the time of listing of assets on the balance sheet, the assets are prioritized based on the liquidity. The high liquid assets are reported in the beginning of asset section, and then low liquid assets are reported.

Answer 13

Ch. 2 - The order in which assets were listed and...Ch. 2 - Prob. 2DQ Ch. 2 - How is revenue related to retained earnings?Ch. 2 - Prob. 4DQ Ch. 2 - Prob. 5DQ Ch. 2 - Prob. 6DQ Ch. 2 - Prob. 7DQ Ch. 2 - Distinguish between journalizing and posting.Ch. 2 - True or false: If the trial balance is in balance,...Ch. 2 - When it is time to prepare the financial...

The order in which assets were listed and described in the text is the order in which you will see them listed on the balance sheet . What is the organizing principle behind the order in which assets are listed?

Concept explainers

Videos

Explanation of Solution

Want to see more full solutions like this?

Chapter 2 Solutions