Question

Arrange the following assets and liabilities in the order of liquidity and in the order of permanence.

Cash in hand	Cash at bank
Stock	Prepaid insurance
Building	Bills payable
Loose tools	Outstanding expenses
Land	Capital
Goodwill	Bank overdraft
Furniture	Creditors
Debtors	Income received in advance
	Loans

Answer 1

Assets	Liabilities
1. Cash in hand	1. Bills payable
2. Cash at bank	2. Creditors
3. Debtors	3. Bank overdraft
4. Prepaid insurance	4. Outstanding expenses
5. Stock	5. Income received in advance
6. Furniture	6. Loans
7. Building	7. Capital
8. Land
9. Loose tools
10. Goodwill

In the order of permanence

Assets	Liabilities
1. Goodwill	1. capital
2. Loose tools	2. Loans
3. Land	3. Income received in advance
4. Building	4. Outstanding expenses
5. Furniture	5. Bank overdraft
6. Stock	6. Creditors
7. Prepaid insurance	7. Bills payable
8. Debtors
9. Cash at bank
10. Cash in hand