Question

A classified balance sheet:____________.A. Measures a company's ability to pay its bills on time. B. Organizes assets and liabilities into important subgroups that provide more information. C. Broadly groups items into assets, liabilities and equity. D. Reports operating, investing, and financing activities. E. Reports the effect of profit and dividends on retained earnings.

Answer 1

The correct answer is B

Step-by-step explanation:

Classified balance sheet is the one which provides or presents the information regarding the assets, shareholder's equity and the liabilities of the entity which is further segregated or classified into the sub- categories of the accounts.

The most common is the Long-term investments and Current Assets.

So, it organizes the assets and the liabilities into vital sub- groups which provide more information.