Final answer:
The assets section of a classified balance sheet is commonly divided into current assets and non-current assets. Other groups related to balance sheet assets include tangible versus intangible assets and operating versus non-operating assets. Fixed assets are long-term assets, while current liabilities are obligations and are part of the liabilities section.
Step-by-step explanation:
Classified Balance Sheet Subgroups
On a classified balance sheet, the assets section is commonly divided into two main subgroups: current assets and non-current assets. Current assets are those expected to be converted to cash or used up within one year, such as cash and cash equivalents, accounts receivable, and inventory. Non-current assets, also known as long-term or fixed assets, are expected to provide economic value for longer than one year and include tangible assets like property, plant, and equipment, as well as intangible assets such as patents and trademarks.
Tangible assets and intangible assets can also be considered when discussing assets, although they are not distinct categories for classification on the balance sheet. Tangible assets are physical items such as machinery, whereas intangible assets are non-physical assets like intellectual property.
Operating assets and non-operating assets are additional ways to categorize assets based on their use in the core business operations or for investment purposes, respectively. Lastly, fixed assets are long-term assets intended for use in the business, while current liabilities are obligations due within one year and belong in the liabilities section, not the assets.