Question

A classified balance sheet places each asset and each liability into a specific category. True or False?

Answer 1

A classified balance sheet places each asset and each liability into a specific category.

Step-by-step explanation:

True. A classified balance sheet places each asset and liability into a specific category. These categories typically include current assets, long-term investments, property and equipment, intangible assets, current liabilities, and long-term liabilities. By organizing the assets and liabilities into different categories, a classified balance sheet provides a clearer picture of a company's financial situation.