Order of the balance sheet

AmyCharleton

Also... does anybody have any tricks on how to remember the order of the balance sheet? Thanks :001_smile:

sarahwilson

I remember it by thinking I have to list assets first from easiest to spend to hardest, its obviously easier to spend cash in the bank than it is money a debtor hasn't paid you yet.

Liabilities run on order that they will be cleared off, so its creditors before a mortgage.

Hope that helps

Esme

Fixed Assets

Current Assets- In order of liquidity, ie what would be easiest to turn into cash, from bottom to top.

Liabilities

Capital (Financed By)

AmyCharleton

Thanks for the help! Ive been at FTC today which has helped but the idea about hardest to spend is really good! :thumbup: Thanks guys!