Current liabilities on the SFP

MarkMisk
MarkMisk Registered Posts: 1 New contributor 🐸
in Financial Accounting: Preparing Financial Statements
What order are the liabilities listed in the SFP? I know that current assets are listed in reverse order of liquidity, but the Kaplan study text does not specify which order the current liabilities are listed.

The exam kit has several questions for filling in a SFP for a sole trader and in each answer the order is different.

Is this something that could possibly lose me marks in the exam?

Comments

  • PeterC
    PeterC Registered, Tutor Posts: 249 Dedicated contributor 🦉
    Current assets in the SFP start with cash, the most liquid.

    Here is the AI view of the correct sequence: In order of liquidity, current assets are typically listed as: Cash, cash equivalents, marketable securities, accounts receivable, inventory, and prepaid expenses; with cash being the most liquid and prepaid expenses being the least liquid.

    In my opinion, this list is correct.

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