Question

What two criteria are used to explain the order to which line items are listed on the bakance sheet?

____ and _____

Answer 1

The two criteria used are Current and Non current, All the assets and liabilities are classified as current and non current. Under the current assets or liabilities section. All the assets that are expected to be realized / converted into cash within one year are classified as current assets. All other assets are non current assets. Similarly, all the liabilities that are expected to be paid / settled within one year are current liabilities while others are non current liabilities.