Question

The accounts of Local Company at May 31, 2019 are as follows:

Account	Balance
Accounts Payable	$23,500
Accounts Receivable	$15,600
Cash	$68,000
Common Stock	$32,000
Dividends	$3,000
Insurance Expense	$2,100
Retained Earnings	$25,800
Salary Expense	$1,100
Sales Revenue	$10,000
Supplies	$1,500

What are the first four lines, in proper order, on the trial balance at May 31, 2019?

Sales Revenue, Salary Expense, Insurance Expense, Supplies

Accounts Payable, Dividends, Common Stock, Retained Earnings

Cash, Accounts Receivable, Supplies, Accounts Payable

Accounts Payable, Accounts Receivable, Cash, Common Stock

Answer 1

In the trial balance, accounts are displayed in the following order assets (In order of liquidity, highly liquid assets are displayed first), liabilities, equity, dividend, revenue and expenses.

As the question has asked first 4 lines of trial balance first all assets will be considered and then liabilities.

So the most liquid asset is cash, then account recievable, then supplies, after that in liabilities account payable.

So the correct answer is C part that is

Cash, account recievable, supplies, account payable.