Classified Balance Sheets

earned full points

Classified Balance Sheets

Katherine Thomas

ACC/220

March 9, 2013

Mary Currie

Classified Balance Sheets

A Classified Balance Sheet is summary balance sheet that lists four groupings of similar assets and liabilities, which helps define the financial health of the company. The groupings are Current assets; Long-term investments; Property, plant, and equipment, and Intangible assets. Each group lists the value of each similar asset or liability and help management or investors evaluate if the company has enough revenue or assets to satisfy debts, loans and investor obligations, and also determine what short-term or long-term claims there are against said assets.

Current assets are any assets that can be converted to cash on hand for immediate or short-term availability; short-term investments like US bonds; revenue from accounts receivable and interest received; value of property, equipment and inventory; the value of supplies expected to be used within a year, and prepaid insurance.

Long-term investments are usually the value of company investments made in other corporations as a form of security for monies invested in the company. These investments may include stocks and bonds, purchasing of other investment property and other tangible assets or securities. This value also helps to stabilize the value of the company as long as these investments remain sound.

Property, plant, and equipment - or fixed assets - refer to the value of the assets necessary for operating the business. It includes the value of the property and building where the business operates; the value of all the equipment and machinery; delivery trucks and equipment necessary to produce and distribute goods and services, and all sundry office and factory furnishings. These items are subject to depreciation over a specified time period or for the life of that property, plant or equipment.

Intangible assets...