Why would we bother classifying assets in order of their liquidity on a statement of financial position?

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‘Why would we bother classifying assets in order of their liquidity on a statement of financial position? After all, the value placed on assets is not a true reflection of how much we could sell them for.’ Discuss.

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Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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Question Posted: Jun 18, 2019 10:38 AM

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Why would we bother classifying assets in order of their liquidity on a statement of financial position?

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Even though the accounts do not record assets at their selling price or realisable v...View the full answer

Accounting

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