Ahrens Inc is preparing its January balance sheet. Ahrens has $3,100 in Supplies to be converted in March, $4,700 Notes Receivable to be converted in August, $800 in Prepaid Insurance to be converted in April, and $6,200 in Accounts Receivable to be converted in June. In what order should Ahrens list these assets?

Question

Business

Gabriela Martin

8 May, 10:40

Ahrens Inc is preparing its January balance sheet. Ahrens has $3,100 in Supplies to be converted in March, $4,700 Notes Receivable to be converted in August, $800 in Prepaid Insurance to be converted in April, and $6,200 in Accounts Receivable to be converted in June. In what order should Ahrens list these assets?

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Laurel Henry · Answer 1

Assets should be listed down based on its liquidity. The more liquid it is, the higher its place in the balance sheet.

$3,100 in Supplies to be converted in March,

$4,700 Notes Receivable to be converted in August,

$800 in Prepaid Insurance to be converted in April, and

$6,200 in Accounts Receivable to be converted in June

The assets should be listed in this order:

Supplies $3,100

Prepaid Insurance $800

Accounts Receivable $6,200

Notes Receivable $4,700