Which of the following lists balance sheet items in alphabetical order?

• A. Accounts Payable, Cash, Inventory, Land
• B. Inventory, Land, Accounts Payable, Cash
• C. Cash, Inventory, Land, Accounts Payable
• D. Land, Accounts Payable, Cash, Inventory

Answer: (A)

Verified step by step guidance

1. Understand the concept of a balance sheet: A balance sheet is a financial statement that lists a company's assets, liabilities, and equity at a specific point in time. Items on the balance sheet are typically categorized as assets, liabilities, or equity.
2. Identify the items provided in the problem: The items listed are Accounts Payable, Cash, Inventory, and Land. Accounts Payable is a liability, while Cash, Inventory, and Land are assets.
3. Recall the alphabetical order rule: Alphabetical order means arranging items based on the sequence of letters in the English alphabet, starting from A to Z.
4. Arrange the items in alphabetical order: Compare the first letter of each item (A for Accounts Payable, C for Cash, I for Inventory, L for Land) and sort them accordingly.
5. Verify the arrangement: Ensure that the sorted list matches the alphabetical order and corresponds to one of the options provided in the problem.