A classified balance sheet:
A)Measures a company's ability to pay its bills on time.
B)Organizes assets and liabilities into important subgroups that provide more information.
C)Broadly groups items into assets,liabilities and equity.
D)Reports operating,investing,and financing activities.
E)Reports the effect of profit and withdrawals on owner's capital.

Question

Quizplus · Accepted Answer

A classified balance sheet organizes assets and liabilities into subgroups such as current and non-current, providing more information than a broad grouping of items into assets, liabilities, and equity. It does not measure a company's ability to pay bills on time, report operating/investing/financing activities, or the effect of profit and withdrawals on owner's capital.

A Classified Balance Sheet