Asked by Caden Coulson on Jun 19, 2024
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On balance sheets prepared in accordance with U.S.GAAP items are generally disclosed in ascending order of liquidity.
U.S.GAAP
The set of accounting principles and standards used in the United States to govern the preparation of financial statements by publicly traded companies, focusing on transparency, consistency, and comparability.
Ascending Order of Liquidity
A financial classification method where assets are listed from the least liquid to the most liquid, typically starting with long-term investments and ending with cash.
- Know the differences in reporting standards and practices under U.S. GAAP and IFRS, especially in terms of liquidity and balance sheet ordering.
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Learning Objectives
- Know the differences in reporting standards and practices under U.S. GAAP and IFRS, especially in terms of liquidity and balance sheet ordering.
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