In a classified balance sheet the following is NOT true:
A)The long term assets and liabilities are presented before the short term assets and liabilities.
B)The asset and liability sections are divided into short-term and long-term sections.
C)Shareholders' equity is made up of retained earnings and share capital.
D)The current assets are listed in order of liquidity.

Question

Quizplus · Accepted Answer

In a classified balance sheet, the short-term assets and liabilities are presented before the long-term assets and liabilities. This is because short-term assets and liabilities are more immediate and have a greater impact on a company's current financial position.

In a Classified Balance Sheet the Following Is NOT True