Classified Balance Sheet Example
Classified Balance Sheet Example is presented below to understand this special type of Balance Sheet. In a classified Balance Sheet, the assets are separated into:
- Current Assets
- Long Term Investments
- Property, Plant and Equipment (PP&E)
- Intangible Assets
And liabilities and owner’s equity are similarly classified as:
- Current Liabilities
- Long Term Liabilities
- Shareholders’ Equity
Current assets are those assets that are expected to be turned into cash or used up within the next year. Assets that are not expected to be turned into cash or used up within the next year are classified as non-current. Current liabilities are those liabilities that are expected to be paid during the next year. Non-current liabilities are those liabilities that are expected to be paid sometime after next year.
Nobles, T. L., Cathy , S. J., Douglas, M. J., & Patricia, B. A. (2013). College Accounting. Canada: South-Western, Cengage Learning.