Which of the following statements about the balance sheet is correct?
A)A classified balance sheet is one that contains privileged information.
B)Current liabilities are debts and other obligations that will be paid or fulfilled within 12 months of the balance sheet date.
C)All companies use the chart 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

A classified balance sheet is a balance sheet that shows a subtotal for current assets and current liabilities.Current liabilities are debts and obligations that will be paid,settled,or fulfilled within 12 months of the balance sheet date.Although some account titles are common across all companies,each chart of accounts is tailored to each company's business.A balance sheet is prepared as of a specific date (rather than for a period of time).

Which of the Following Statements About the Balance Sheet Is