Final answer:
The balance sheet accounts should be 'Grouped by liquidity' to present a clear view of the company's financial health, showing the most immediate assets and liabilities first.
Step-by-step explanation:
Tracy is reviewing the balance sheet for her business, and she notices that the accounts should be Grouped by liquidity. This organization method aligns with the general accounting principles for preparing financial statements, where assets, for instance, are listed in order of their liquidity, meaning the ease with which they can be converted into cash.
Liabilities are typically organized in the order in which they will be settled. The purpose of this approach is to provide a clear view of the company's financial health by displaying the most immediate financial elements first.