An advantage of a classified balance sheet is that it is easy to see:
A)If the company is likely to be profitable in future periods.
B)If the company is profitable in the current period.
C)If current assets are large enough to pay current liabilities.

Question

Quizplus · Accepted Answer

The advantage of a classified balance sheet is that it separates current assets and liabilities from non-current assets and liabilities, making it easy to see if the company has enough current assets to pay its current liabilities. This helps to assess the company's liquidity position. However, it does not provide information about the company's profitability in the current period or future periods.

An Advantage of a Classified Balance Sheet Is That It