Financial Accounting
4th Edition
ISBN: 9780134125053
Author: Kemp, Robert S., Waybright, Jeffrey.
Publisher: Pearson Education,
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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
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.
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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
What accounting concepts are used in the balance sheet (mainly on assets) based on the data provided below?
Chapter 2 Solutions
Financial Accounting
Ch. 2 - The order in which assets were listed and...Ch. 2 - Prob. 2DQCh. 2 - How is revenue related to retained earnings?Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 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...
Ch. 2 - Which sequence of actions correctly summarizes the...Ch. 2 - Prob. 2SCCh. 2 - Prob. 3SCCh. 2 - Prob. 4SCCh. 2 - Prob. 5SCCh. 2 - Which journal entry records obtaining a bank loan...Ch. 2 - RV Wholesale, Inc., paid 1,200 for supplies and...Ch. 2 - Prob. 8SCCh. 2 - Prob. 9SCCh. 2 - Prob. 10SCCh. 2 - Prob. 11SCCh. 2 - Prob. 12SCCh. 2 - Prob. 1SECh. 2 - Prob. 2SECh. 2 - Prob. 3SECh. 2 - Prob. 4SECh. 2 - Accounting terminology (Learning Objectives 2, 3, ...Ch. 2 - Effects of debits and credits on accounts...Ch. 2 - Balancing accounts and normal balances (Learning...Ch. 2 - Types of accounts and effects of debits and...Ch. 2 - Prob. 9SECh. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 11SECh. 2 - Prob. 12SECh. 2 - Prob. 13SECh. 2 - Accounting terminology (Learning Objectives 1, 2,...Ch. 2 - Prob. 15AECh. 2 - Journalizing transactions (Learning Objective 3)...Ch. 2 - Prob. 17AECh. 2 - Prob. 18AECh. 2 - Prob. 19AECh. 2 - Prob. 20AECh. 2 - Prob. 21AECh. 2 - Prob. 22AECh. 2 - Prob. 23BECh. 2 - Prob. 24BECh. 2 - Prob. 25BECh. 2 - Prob. 26BECh. 2 - Prob. 27BECh. 2 - Prob. 28BECh. 2 - Prob. 29BECh. 2 - Prob. 30BECh. 2 - Prob. 31APCh. 2 - Prob. 32APCh. 2 - Prob. 33APCh. 2 - Prob. 34APCh. 2 - Prob. 35APCh. 2 - Prob. 36APCh. 2 - Prob. 37BPCh. 2 - Prob. 38BPCh. 2 - Prob. 39BPCh. 2 - Prob. 40BPCh. 2 - Prob. 41BPCh. 2 - Prob. 42BPCh. 2 - Prob. 1CECh. 2 - Prob. 1CPCh. 2 - Prob. 1CFSAPCh. 2 - Prob. 1EIACh. 2 - Prob. 2EIACh. 2 - Prob. 1FACh. 2 - Prob. 1IACh. 2 - Prob. 1SBACh. 2 - Prob. 1WC
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- I have a question about the Balance Sheet. Is it true that there are two formats (Account Form and Report Form)?Secondly when listing Assets on the Balance Sheet there is an order to following with assets. Example Current Assets are listed first and in order of liquidity. Then the Long Term Assets. Now where to Tangible and Non Tangible Assets fit into this format?arrow_forwardexplain the purpose of and the information found on the balance sheetarrow_forwardA. What is total current assets on this company's balance sheet? B. What is the correct order for the current assets section of this company's balance sheet? ANSWER IN DETAILarrow_forward
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