A Classified Balance Sheet Organizes Assets, Liabilities And Equity

A Classified Balance Sheet Organizes What Type Of Accounts And In Which Category?

A Classified Balance Sheet arranges or organizes Assets, Liabilities And Equity into subcategories or subgroups.

Firstly, we record current assets, then long-term investments and lastly we record shareholder equity.

A list of these subgroups are shown below: 

  Assets 

(i) Current Assets

(ii) Long-Term Investments

(iii) Non Current Assets / Fixed Assets

(iv) Intangible Assets 

(v) Other Assets

  Liabilities & Equity 

(vi) Current Liabilities

(vii) Long-Term Liabilities

(viii) Equity

In order to analyse a company financial position on a specified time of a specified date, subtotals of accounts i.e., assets, liabilities and equity are categorized in a classified balance sheet and such classification is based on particular industry in which a company is operating.

Such representation of balance sheet accounts helps the Users of Financial Statements to get and understand the meaningful information of different types of permanent accounts stated on classified balance sheet.