Account True False[1 Marks ]

Marshalling means showing the assets and liabilities in a proper order in the Balance Sheet.

The asset which is most easily convertible into cash is shown first and the liability which is to be paid at the earliest will be shown last in order of liquidity.

The least liquid asset is shown first and the least urgent liability is shown last in order of permanence.

Grouping means showing the items of similar nature under a common heading.

Prepaid expenses are treated as liquid assets.

Goodwill is a tangible asset.

Balance Sheet is prepared on a particular date and not for a particular accounting period.

Current assets do not include closing stock.