Definition of Classified Balance Sheet
A classified balance sheet arranges the amounts from a company's balance sheet accounts into a format that is useful for the readers. For instance, the reader can easily calculate the company's working capital since the classified balance sheet shows the total amount of the company's current assets and the total amount of its current liabilities.
A classified balance sheet is likely used by companies and is organized as follows:
- Current assets
- Long-term investments
- Property, plant and equipment
- Intangible assets
- Other assets
- Current liabilities
- Noncurrent or long-term liabilities
- Stockholders' (or owner's) equity
Example of Classified Balance Sheet
A condensed version of a classified balance sheet is shown here:
