Order of the balance sheet

Options
AmyCharleton
AmyCharleton Registered Posts: 3 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
Also... does anybody have any tricks on how to remember the order of the balance sheet? Thanks :001_smile:

Comments

  • sarahwilson
    sarahwilson Registered Posts: 551 Epic contributor 🐘
    Options
    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
    Esme Registered Posts: 711 Epic contributor 🐘
    Options
    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
    AmyCharleton Registered Posts: 3 New contributor 🐸
    Options
    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!

Categories

Privacy Policy