The assets section of a classified balance sheet usually includes:
A)Current assets, long-term investments, plant assets, and intangible assets.
B)Current assets, long-term assets, revenues, and intangible assets.
C)Current assets, long-term investments, plant assets, and equity.
D)Current liabilities, long-term investments, plant assets, and intangible assets.
E)Current assets, liabilities, plant assets, and intangible assets.

Question

Quizplus · Accepted Answer

The assets section of a classified balance sheet usually includes current assets, long-term investments, plant assets, and intangible assets. This is because these types of assets can be easily classified and help users of the financial statements to understand the company's overall financial position. Current assets are assets that are expected to be converted into cash or used up within one year, long-term investments are assets that the company plans to hold for more than one year, plant assets are tangible assets used in the production of goods or services, and intangible assets are assets that don't have physical substance but have value to the company. Revenues and equity are not included in the assets section of the balance sheet.

The Assets Section of a Classified Balance Sheet Usually Includes