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Classified Balance Sheet

Classified Balance Sheet. Has the data grouped according to major categories We have already been introduced to the report form of the balance sheet. It is when the information is presented in a one-above-the-other, or vertical, format. Major Categories. Assets:

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Classified Balance Sheet

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  1. Classified Balance Sheet • Has the data grouped according to major categories • We have already been introduced to the report form of the balance sheet. It is when the information is presented in a one-above-the-other, or vertical, format.

  2. Major Categories • Assets: • Current assets- unrestricted cash, an asset that will be converted into cash within one year, or an asset that will be used up within one year • Examples: Bank, Accounts Receivable • Fixed assets- a long-term asset held for its usefulness in producing goods or services. Same as Plant and Equipment

  3. Liabilities • Current liability- a short-term debt, payment of which is expected to occur within one year • Examples: Bank Loan, Accounts Payable • Long-term liability- a liability which, in the ordinary course of business, will not be paid within one year • Example: Mortgage Payment

  4. Peoples’ Security Company Classified Balance Sheet December 31, 2011 Heading Assets < 1 year (very liquid) Assets > 1 year Debts to be paid within 1 year (short term) Debts > 1 year Net Income > Drawings

  5. Global LogisticsClassified Balance SheetDecember 31, 20-4

  6. For tomorrow: • Complete Exercise #1, 2 p. 276 (t), p.192-193 (w) • Start exercise #2 ‘Ying Lo’ p. 292 (t) p. 202-204 (w) * Check posted answers on board

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