Multiple choice

In the case of balance sheet, 'Marshalling' means

  1. putting together items of a similar nature under a common heading

  2. two sides of balance sheet - liability side and asset side

  3. the order in which the various assets and liabilities are arranged

  4. Both (2) and (3)

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C Correct answer
Explanation

Marshalling in balance sheet context refers to the systematic arrangement of assets and liabilities in a specific order. The two sides of the balance sheet (assets and liabilities) exist regardless of marshalling. Marshalling determines the ORDER in which items are presented - whether by liquidity, permanence, or other classification principles.

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