Final answer:
The claim is false; available-for-sale securities can be classified as current or non-current assets on the balance sheet depending on their intended sale period.
Step-by-step explanation:
The statement that all securities considered available for sale should be reported as current assets in a classified balance sheet is false. Available-for-sale securities are a specific type of investment in debt or equity securities and are reported on a company's balance sheet as either current assets or non-current assets depending on the management's intention regarding the time frame of their sale. These securities are part of a company's marketable securities and, if intended to be sold within the operating cycle or one year, they can be classified as current assets. However, if they are intended to be held for a longer duration, they are classified as non-current assets.
Understanding the balance sheet, which is an accounting tool that lists assets and liabilities, is critical. Assets are items of value that a firm owns, like reserves, loans made, and U.S. Government Securities. For a bank, T-accounts help display this information, showing assets on the left and liabilities and net worth on the right. The net worth, which is calculated as total assets minus total liabilities, is also included on the balance sheet and is a reflection of the bank's financial health.