Answer to Question 1
Current assets are assets that are cash or assets that can be converted quickly into cash and will be used in one year or less. Because cash is the most liquid asset, it is listed first followed by marketable securities-stocks, bonds, and other investments. Current assets are listed in the order of liquidity. The liquidity of an asset is the ease with which it can be converted into cash. On the other hand, fixed assets will be held or used for a period longer than one year. Because of the time period and the problems with converting fixed assets to cash, they are listed after current assets.
Answer to Question 2
True
