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<p>A) PERMANENCY PREFERENCE METHOD</p> <p>Asset and Liablities shows on base of permanence.</p> <p> </p> <p>B) LIQUIDITY PREFERENCE METHOD</p> <p>Assets and Liabilities shows on the base of liquidity then permanence</p> <p>C) MIX METHOD.</p> <p>Assets shows with permance then liquidity libilities shows with liquidity than permanency</p> <p> </p>
Comapnies normally follow permaneny method.
A) PERMANENCY PREFERENCE METHOD
Asset and Liablities shows on base of permanence.
Proprietorship and Partnership mostly present assets and liabiilities in the order of liquidity.
C) MIX METHOD.
C. Mix Method
I would say C- Mixed method.
B) LIQUIDITY PREFERENCE METHOD
A balance sheet (also known as a statement of financial position) is a formal document that follows a standard accounting format showing the same categories of assets and liabilities regardless of the size or nature of the business.
The strength of GAAP is the reliability of company data from one accounting period to another and the ability to compare the financial statements of different companies.
All balance sheets follow the same format: If it is in two columns, assets are on the left, liabilities are on the right, and net worth is beneath liabilities. If it is in one column, assets are listed first, followed by liabilities and net worth.
C: Mostly C is in practice
mix method
c - mixed method
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