A classified balance sheet
A) Measures a company's ability to pay its bills on time
B) Organizes assets and liabilities into important subgroups
C) Presents revenues, expenses and profit
D) Shows operating, investing, and financing activities
E) Shows the effect of profit and withdrawals on owner's capital

Question

Quizplus · Accepted Answer

A classified balance sheet organizes assets and liabilities into important subgroups, such as current assets and long-term assets, and current liabilities and long-term liabilities. This allows for better analysis of a company's financial position and ability to meet its obligations in the short-term and long-term. The other options listed refer to different financial statements or activities that may be included in a company's overall financial reporting, but are not specifically related to a classified balance sheet.

A Classified Balance Sheet