A classified balance sheet differs from an unclassified balance sheet in that
A)a unclassified balance sheet is never used by large companies.
B)a classified balance sheet normally includes only three subgroups.
C)a classified balance sheet presents information in a manner that makes it easier to calculate a company's current ratio.
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 cannot be provided to outside parties.

Question

Quizplus · Accepted Answer

A classified balance sheet presents information in a manner that makes it easier to calculate a company's current ratio by grouping accounts into current assets and liabilities, and non-current assets and liabilities. An unclassified balance sheet does not provide this level of detail or organization. The other options are not true statements about the difference between a classified and unclassified balance sheet.

A Classified Balance Sheet Differs from an Unclassified Balance Sheet