Assets are listed on the balance sheet in the order of their a. purchase date. b. adjustments. c. liquidity. d. balance.

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

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

In the balance sheet, assets are listed by ___? A. The importance of the asset B. their date of purchase C. the order of liquidity D. The value of the assets

Which of the following describes how assets are listed onthe balance sheet?a. In alphabetical order.b. In order of magnitude, lowest value to highestvalue.c. In the order they will be used up or turned intocash.d. From least current to most current

Distinguishing between current and non-current items on the balance sheet and presenting a subtotal for current assets and liabilities is referred to as: C . a liquidity-based balance sheet

Answer 2

Textbook Question

Chapter 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

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 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

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 4, Problem 1QC

Assets are listed on the balance sheet in the order of their

a. purchase date.

b. adjustments.

c. liquidity.

d. balance.

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

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

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

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Answer 8

Expert Solution & Answer

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer to Problem 1QC

(c) liquidity

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Conclusion

Hence, the correct answer option is (c)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources, on a specific date. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To identify: The basis of order of listing assets on the balance sheet.

Answer 12

Answer to Problem 1QC

(c) liquidity

Answer 13

Explanation of Solution

Explanation for correct answer: The assets and liabilities of the balance sheet are listed based on the order of liquidity. The order of liquidity states that list of assets and liabilities that are quickly and easily available to convert into immediate cash are listed first and so on. In order of liquidity, the assets are listed as current assets, fixed assets, and intangible assets. However, the liabilities are listed as current liabilities and long-term liabilities.

Explanation for incorrect answers:

Option (a) is incorrect because the format of the balance sheet does not contain date column. The balance sheet only shows the items of assets, liabilities, and equity along with their amount.
Option (b) is incorrect because the balance sheet records the accounts balances of those assets and liabilities which are already adjusted and transferred to the adjusted trial balance.
Option (d) is incorrect because the assets and liabilities on the balance sheet are listed in order of their nature of occurrences. But, they not listed in order of their balance.

Answer 14

Conclusion

Hence, the correct answer option is (c)

Answer 15

Ch. 4 - Assets are listed on the balance sheet in the...Ch. 4 - Which of the following accounts would be included...Ch. 4 - Which situation indicates a net loss within the...Ch. 4 - Which of the following accounts is not closed? a....Ch. 4 - What do closing entries accomplish? a. Zero out...Ch. 4 - Which of the following is not a closing entry?Ch. 4 - Which of the following accounts may appear on a...Ch. 4 - Which of the following steps of the accounting...Ch. 4 - Clean Water Softener Systems has Cash of 600,...Ch. 4 - Which of the following statements concerning...

Assets are listed on the balance sheet in the order of their a. purchase date. b. adjustments. c. liquidity. d. balance.

Concept explainers

Videos

Answer to Problem 1QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 4 Solutions