A classified balance sheet shows subtotals for current

  1. A classified balance sheet ______.

    Shows only current assets and current liabilities
    Shows changes in assets, liabilities, revenues and expenses
    Contains confidential information
    Shows subtotals for current assets and current liabilities


Answer The last option is the correct answer “Show subtotal for current assets and current liabilities”. Explanation- The Classified Balance sheet is the financial statement of the company that contains all current assets and current liabilities including the long-term assets and long-term debt and also the capital and shareholder equity and in the balance sheet the total assets should be equal to total laibilities. So as written in option 1 that it includes only current assets and liabilities it is a wrong answer because it also contains the long-term assets and liabilities and capital. and option 2 is also the wrong answer because the balance sheet does not include the revenue and expense. and option 3 is wrong because it is visible for everybody anyone can see the balance of any company for knowing the financial condition of the company it is not any confidential information.

So option 4 is the correct answer because it is according the definition I have given in the explanation

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