Advertisements
Advertisements
Question
Distinguish between liquidity preference and permanence preference.
Distinguish Between
Solution
| Liquidity Preference Method | Permanence Preference Method |
| This strategy arranges assets and liabilities based on liquidity. | This strategy arranges assets and liabilities in order of permanence on the balance sheet. |
| The more liquid the assets, the earlier they appear. | Permanent assets and liabilities are shown earlier. |
shaalaa.com
Format of Balance Sheet
Is there an error in this question or solution?
