Question

Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Green Caterpillar Garden Supplies Inc.’s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)? The company’s debts should be listed in order of their liquidity. The company’s debts should be listed from those carrying the largest balance to those with the smallest balance. The company’s debts are listed in the order in which they are to be repaid.

Answer 1

The company’s debts are listed in the order in which they are to be repaid.

Step-by-step explanation:

As per the different items recorded in the balance sheet, the balance sheet of the company could be the same with the U.S GAAP that represents that the debt of the company could be listed in that order in which they are paid and the same is to be considered like first current liabilities, than long term debt etc

Hence, the last option is correct