Which of the following statements regarding the balance sheet is true?
A)A "classified" balance sheet is one that contains privileged information.
B)All liabilities require that the company sacrifice resources at some time in the future.
C)All companies use an identical list of account names defined by the Financial Accounting Standards Board (FASB).
D)A balance sheet is prepared for a period of time.

Question

Quizplus · Accepted Answer

All liabilities are obligations for a company to sacrifice resources in the future. A "classified" balance sheet is one that separates assets and liabilities into current and non-current categories, it does not contain privileged information. Companies may use different account names, but they must follow generally accepted accounting principles (GAAP) set by the FASB. A balance sheet is a snapshot of a company's financial position at a specific point in time, not for a period.

Which of the Following Statements Regarding the Balance Sheet Is