Right Place Or Order of Assets On Balance Sheet According To Liquidity

Assets on Balance Sheet are sorted in the order of Liquidity i.e. the most liquid asset comes first and then the next most liquid asset and so on. Cash is the most liquid asset, so it comes first then, Cash Equivalents are the most liquid assets, so these come in the second position, then Accounts Receivable, Inventory, Accrual And Deferrals or Prepayments.Then Fixed Assets or Non Current Assets and finally under Intangible Assets, Goodwill comes the last one to record in the Balance Sheet.

Order Of Assets On Balance Sheet (According To Liquidity)

 

1. Cash (First One)

2. Cash Equivalents (Capital Money such as Shares, etc,)

2. Accounts Receivable / Sundry Debtors

3. Inventory / Stock / Merchandise

4. Prepaid Expenses / Accrued Incomes or Revenues

5. Fixed Assets / Non Current Tangible Assets

6. Intangible Assets (such as Patents, Franchises, Copyrights, Licenses, etc.)

7. Final Asset is Goodwill