Question

Current liabilities generally appear ______ on the balance sheet.

1) after long-term debt
2) in decreasing order of magnitude
3) in order of maturity
4) in increasing order of magnitude

Answer 1

Current liabilities generally appear in increasing order of magnitude on the balance sheet.

Step-by-step explanation:

Current liabilities generally appear in increasing order of magnitude on the balance sheet.

This means that the liabilities with the highest amount are usually listed first.

For example, accounts payable, which is money owed to suppliers, would typically appear before short-term loans on the balance sheet.