Answer:

When assets are arranged in order of their liquidity, the first item to be shown is "Cash." This is because cash is the most liquid asset and can be readily converted into other assets.

Explanation:

Arranging assets in the order of their liquidity means arranging them in order of how easily they can be converted into cash. Liquidity refers to the ability to quickly and easily convert an asset into cash without losing value.

The order of liquidity for assets is typically as follows:

1. Cash: This includes physical currency, bank deposits, and short-term investments that can be easily converted into cash.
2. Marketable securities: These are investments that can be easily sold on the open market, such as stocks and bonds.
3. Accounts receivable: This is money owed to a company by its customers, which can be converted into cash through the collection process.
4. Inventory: This is the stock of goods a company holds, which can be sold for cash.
5. Property, plant, and equipment: These are physical assets such as buildings, machinery, and vehicles, which can be sold for cash but may take longer to find a buyer.
6. Intangible assets: These include patents, trademarks, and goodwill, which may have value but are difficult to convert into cash.

Cash is the most liquid asset because it can be used to buy anything, and it is readily accepted as a medium of exchange. Other assets may have value, but they may be difficult to sell quickly, and their value may be affected by market conditions. Therefore, when assets are arranged in order of liquidity, cash is always listed first.