Current assets are shown in the balance sheet in order of permanence as

JAMB Accounting 2023 55 views

Current assets are shown in the balance sheet in order of permanence as

  1. debtors, stock, bank and cash
  2. debtors, stock, cash and bank
  3. stock, bank, debtors and cash
  4. stock, debtors, bank and cash ✓

Explanation

Current assets are listed from least liquid (hardest to convert to cash) to most liquid. Stock must be sold first, debtors must pay, bank money is very accessible, and cash is immediately available.

The order reflects how quickly each asset becomes usable cash. Stock takes longest because you must sell it and then collect payment.

Remember the order: Stock → Debtors → Bank → Cash. From slowest to fastest conversion to cash.

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