Question

Place a number, 1 through 7, in front of each of the following balance sheet categories to designate the order in which they are to be presented in a classified balance sheet. - Long-term investments - Current liabilities - Stockholders' equity- Intangible assets - Current assets - Long-term liabilities - Property, plant, and equipment

Answer 1

Explanation:

Classified balance sheet presents information about assets,liabilities and shareholder's equity of an entity.Order in which they are presented is as follows"

1. Current assets-it includes cash and cash equivalents like prepaid expenses,inventories,assets held for sale.
2. Long term investments-it includes investment made in other companies
3. Property,plant and equipment-it includes all the fixed assets.
4. Intangible assets-it includes assets which cannot be touched like goodwill.
5. Current liabilities-it includes trade and other payables, accrued expenses,liabilities held for sale
6. Long term liabilities-It includes long term loans,Deferred tax liabilities.
7. Stockholder's equity-It includes share capital.additional paid up capital,retained earnings.