Fourth—Real estate.
The first two classes are termed active or quick assets, as they can be most readily converted into cash.
The liabilities represented by credit balances, are listed in the order of their urgency:
First—Open accounts due others.
Second—Bills payable.
Third—Mortgages or bonds payable.
The third class represents secured liabilities, while the first two represent unsecured liabilities.
Continuing the previous illustration, we find the balance sheet of our imaginary ledger to be as follows:
