A classified balance sheet:
A) Measures a company's ability to pay its bills on time.
B) Organizes assets and liabilities into important subgroups.
C) Presents revenues,expenses and net income.
D) Shows operating,investing,and financing activities.
E) Shows the effect of net income 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, long-term assets, current liabilities, and long-term liabilities. This allows users to better understand the composition of a company's assets and liabilities and their liquidity.

A Classified Balance Sheet