Difference Between Unclassified Balance Sheet And Classified Balance Sheet
An unclassified balance sheet shows only total of assets, liabilities and equity and we get only overall information of these Accounts while a classified balance reports more details about components of balance sheet (Assets, Liabilities & Owners’ Equity / Equity) by providing subgroups and subtotals of permanent accounts on a specified time of a specified date. For a reader of financial statement, unclassified balance sheet does not provide full information of accounting data as more details of assets, liabilities and equity are missing while in case of classified balance sheet subcategories and subtotals of assets, liabilities and equity are shown. Unclassified balance sheet is a simple and basic type of Financial Statements while classified balance sheet is an advanced form of this unclassified balance sheet with more details of assets, liabilities and equity i.e., we find out classification and subtotals of assets and liabilities, long-term investment, equity, etc. ...