The following accounts are listed in a companys general ledger The accountant wants to place the items in order of liquidity on the balance sheet Accounts Receivable Certificates of Deposit (six months) Investment in Stock Prepaid Rent Money Market Fund Petty Cash Fund Required Rank the accounts in...

In order of liquidity on the balance sheet 1 Petty Cash Fund 2 Money ...

The following accounts are listed in a companys general ledger. The accountant wants to place the items

Question:

The following accounts are listed in a company’s general ledger. The accountant wants to place the items in order of liquidity on the Receivable
Certificates of Deposit (six months)
Investment in Stock
Prepaid Rent
Money Market Fund
Petty Cash Fund
Required
Rank the accounts in terms of liquidity. Identify items to be included in the total of cash and explain why the items not included in cash on the are not as liquid as cash. Explain how these items should be classified.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...