Classified balance sheets are useful for assessing a company's liquidity and solvency.

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Classified balance sheets separate assets and liabilities into current and non-current categories, allowing for a better understanding of a company's liquidity and solvency. Current assets and liabilities are those that are expected to be converted to cash or paid within one year, while non-current assets and liabilities are those with longer-term timelines. By analyzing the current and non-current categories separately, investors and analysts can assess a company's ability to meet short-term obligations and evaluate its long-term financial health.

Classified Balance Sheets Are Useful for Assessing a Company's Liquidity