Multiple choice

If the order of permanence is followed in preparing of Balance Sheet

  1. the assets which can be easily converted into cash are written first

  2. the assets which are to be used permanently and not meant to be sold are written first

  3. short-term liablities are written first

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 The asset like goodwill, land and building, which are not meant to be sold are written first .As these assets are meant for permanent use and not easily convertible into cash they are written first. 

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