A Classified Balance Sheet Lists Assets In Order of What?

A classified balance sheet lists assets in the Order of Liquidity as, firstly, the most liquid assets such as Cash come always at first, and then least liquid asset from the previous one come in the second and so on. The second most liquid assets after cash are cash equivalents, accounts receivable, which are converted into cash very quickly within one year.

After current assets, long-term investments, fixed assets / non current assets and intangible assets are listed as these are less liquid as compared to current assets.

Investors are interested in the liquidity of assets as the company has cash in hand for improving Working Capital and can finance different running projects that are necessary to run the business successfully and to get a fair return after financing these projects.

So, a classified balance sheet lists assets, including both current and non current assets in the order of liquidity i.e., the most liquid asset comes at first and then less liquid asset comes in second place which is less liquid from the previous one and so on.