The correct answer is option 2- Arrangement of assets and liabilities in a particular order.
Arrangement of assets and liabilities in a particular order is called Marshalling of Assets and Liabilities in a balance sheet.
In a balance sheet, the assets and liabilities are arranged either in the order of liquidity or permanence. Arrangement of assets and liabilities in a particular order is known as Marshalling. In case of permanence, the most permanent asset or liability is put on the top in the balance sheet and thereafter the assets are arranged in their reducing level of permanence. In case of liquidity, the order is reversed. | 
