A classified balance sheet differs from an unclassified balance sheet in that
A) An unclassified balance sheet is never used by large companies.
B) A classified balance sheet presents information in a manner that makes it easier to calculate a company's current ratio.
C) A classified balance sheet groups items into the broad categories of asset, liability, and equity.
D) A classified balance sheet will include more accounts than an unclassified balance sheet for the same company on the same date.
E) A classified balance sheet is not usually provided to outside parties.

Question

Quizplus · Accepted Answer

A classified balance sheet organizes assets and liabilities into subcategories, such as current and non-current, which facilitates the calculation of financial ratios like the current ratio.

A Classified Balance Sheet Differs from an Unclassified Balance Sheet