Henderson, Inc. owns land worth $800,000 and has $180,000 worth of cash in its bank account. In the asset section of the balance sheet, Henderson lists its land holdings prior to listing its cash since it is a higher value.

Answer the following statement true (T) or false (F)

Question

Business

Lyric Melton

30 June, 10:32

Henderson, Inc. owns land worth $800,000 and has $180,000 worth of cash in its bank account. In the asset section of the balance sheet, Henderson lists its land holdings prior to listing its cash since it is a higher value.

Answer the following statement true (T) or false (F)

+3

Answers (1)

Know the Answer?

Roger Stafford · Answer 1

False

Explanation:

The balance sheet follows certain order, and assets are listing according to their liquidity. Their is no asset more liquid than cash, so cash account is the first current asset to be listed in the balance sheet.

Land is not even considered a liquid asset because it takes a lot of time to sell it and turn it into cash. Even if you have a buyer right away, the paperwork takes time. Land is classified as a non-current asset and must be listed after current assets (and cash of course).

Henderson, Inc. owns land worth $800,000 and has $180,000 worth of cash in its bank account. In the asset section of the balance sheet, Henderson lists its land holdings prior to listing its cash since it is a higher value.Answer the following statement true (T) or false (F)

Henderson, Inc. owns land worth $800,000 and has $180,000 worth of cash in its bank account. In the asset section of the balance sheet, Henderson lists its land holdings prior to listing its cash since it is a higher value.

Answer the following statement true (T) or false (F)