While preparing the Statement of Financial Position, is it necessary to write the Sub-Headings in the same order as given on page 4 of Chapter 8: The Main Accounts? For example, the sub-headings under the Current Assets heading are given as: 1. Inventories 2. Trade Receivables 3. Other Current Assets 4. Cash Will marks be deducted if I give the sub-headings as: 1. Inventories 2. Trade Receivables 3. Cash 4. Other Current Assets
Current assets Hi KaustavSen Whether you'd be deducted marks for writing them in the "wrong" order, only the Examiners will know that for sure ... ... I would personally think it unlikely ... ... but it's probably safest/most logical to write them in the order of increasing liquidity. 1. Inventories <------ most illiquid: need to sell the stock AND be paid 2. Trade Receivables <------ just need to be paid 3. Other Current Assets <------ just need to be paid 4. Cash <------ most liquid: already cash. Hope that helps Best wishes Stuart Stuart Underwood ActEd Tutor
