Question

A list of financial statement items for Splish Brothers Inc. includes the following: accounts receivable $30,100, prepaid insurance $5,590, cash $22,360, supplies $8,170, and debt investments (short-term) $17,630.

Prepare the current assets section of the balance sheet listing the items in the proper sequence.
(List current assets in order of liquidity.)

Answer 1

Answer: Please find answers below

Step-by-step explanation:

The Order of liquidity shows how assets of a company are presented in a balance sheet in an order that shows the faster the time taken for an asset to be converted to Cash.

The order in which Current accounts are represented as as follows

--- Cash (including currency, checking accounts, and petty cash),

----Short-term investments ,

----Accounts receivable,

---- Inventory,

-----Supplies,

----- Pre-paid expenses.

Current Assets of Splish Brothers Inc. in order of liquidity

Current Assets Amount

Cash $22,360

Debt investments(short term) $17,630

Accounts receivables $30,100

Supplies $8,170

Prepaid Insurance $5,590

Total Current Accounts $83,850