In the Balance Sheet, assets are typically arranged in the order of: MCQ with Answer and Explanation

Question
In the Balance Sheet, assets are typically arranged in the order of:
A. Alphabetical order
B. Profitability or Loss
C. Date of purchase
D. Liquidity or Permanence
Answer: Option D
Solution (By JKSSB Mock Tests)
Marshalling of balance sheet assets is done either in the order of liquidity (most liquid first) or permanence (most fixed first).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
Under 'Operating Lease', the asset is shown in the books of:
A. None
B. Lessor
C. Lessee
D. Both
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Correct Answer: Option B

Explanation:
In operating lease, lessor retains ownership and asset is in his books.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Fair Value Accounting requires assets and liabilities to be measured at:
A. Historical Cost
B. Written Down Value
C. Current market price or estimated exit price
D. Book Value
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Correct Answer: Option C

Explanation:
Under Fair Value, items are reported based on current market valuations, replacing the traditional historical cost concept for many financial instruments.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Intangible Asset' (AS 26) is recognised if:
A. It is internally generated
B. It has physical substance
C. It is purchased
D. It is probable that future economic benefits will flow and cost can be measured reliably
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Correct Answer: Option D

Explanation:
Intangible assets are recognised when they meet the definition and recognition criteria.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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