Question

In their financial statements, Gordon Electronics groups all their current assets together, all their property, plant, and equipment together, all their current liabilities together, all their long-term liabilities together, and all their stockholders’ equity together. This is an example of

A. classified balance sheet.
B. complete income statement.
C. complete balance sheet.
D. classified income statement.

Answer 1

A. classified balance sheet.

Step-by-step explanation:

Balance sheet: The balance sheet comprises of the assets and the liabilities.

The assets are further divided into current assets, tangible assets, and intangible assets whereas the liabilities are also further divided into current liabilities, long term liabilities, and shareholder equity.

It is made on a specific date. The purpose of the balance sheet to analyze the financial position, performance, profitability of the organization.

In the given question, the assets are classified into further parts whereas the liabilities are also classified into further parts. So, the grouping of each item is called a classified balance sheet.