Understanding Balance sheets Study guides, Class notes & Summaries

LO.a: Describe the elements of the balance sheet: assets, liabilities, and equity. 1. Which of the following statements is most accurate? A. A classified balance sheet is one which departs materially from accounting standards as per an auditor’s opinion. B. A classified balance sheet is grouped into current and non-current assets and liabilities. C. The excess of current assets over current liabilities is known as liquidity. 2. An asset or liability is created on the balance sheet when r...