Question

List the components of a classified balance sheet in the proper order in accordance with GAAP. List from top to bottom

1. Current assets
2. Non-current assets
3. Current liabilities
4. Non-current liabilities
5. Stockholders' equity

Answer 1

The components of a classified balance sheet, in the proper order according to GAAP, are current assets, non-current assets, current liabilities, non-current liabilities, and stockholders' equity.

Step-by-step explanation:

The components of a classified balance sheet, in the proper order according to GAAP, are as follows:

1. Current assets: These are assets that are expected to be converted into cash or used up within one year. Examples include cash, accounts receivable, and inventory.
2. Non-current assets: These are assets that will not be converted into cash or used up within one year. Examples include long-term investments, property, plant, and equipment.
3. Current liabilities: These are debts that are expected to be paid off within one year. Examples include accounts payable and short-term loans.
4. Non-current liabilities: These are debts that will not be paid off within one year. Examples include long-term loans and bonds payable.
5. Stockholders' equity: This represents the owners' claims to the assets of the company. It includes common stock, retained earnings, and additional paid-in capital.