A classified balance sheet:
A) Broadly groups items into assets, liabilities and equity.
B) Measures a company's ability to pay its bills on time.
C) Organizes assets and liabilities into important subgroups that provide more information.
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 important subgroups, such as current assets and long-term assets, and current liabilities and long-term liabilities. This provides more information and helps users of the financial statement understand the company's financial position more clearly.

A Classified Balance Sheet