A classified balance sheet: Measures a company\'s ability to pay its bills on ti

Question

A classified balance sheet: Measures a company's ability to pay its bills on time. Organizes assets and liabilities into important subgroups Presents revenues, expenses, and net income. Reports operating, investing, and financing activities. Reports the effect of profit and withdrawals on owner's capital. A classified balance sheet differs from an unclassified balance sheet in that. a unclassified balance sheet is never used by large companies. a classified balance sheet normally includes only three subgroups a classified balance sheet presents information in a manner that makes it easier to calculate company's current ratio. a classified balance sheet will include more accounts than an unclassified balance sheet for the same company on the same date. a classified balance sheet cannot be provided to outside parties. Two common subgroups for liabilities on a classified balance sheet are: current liabilities and intangible liabilities. present liabilities and operating liabilities. general liabilities and specific liabilities intangible liabilities and long-term liabilities current liabilities and long-term liabilities.

Explanation / Answer

Ans 5)(b) Organize assets and liabilities into important subgroup.

ANS 6(d) A classified balance sheet will include more account than an unclassified balance sheet for the same company on the same date.

ANS 7(e) Current Liabilities and long term liabilities.

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