Answer:
c) classified balance sheet.
Explanation:
A classified balance sheet can be described as a balance sheet in which the information about assets, liabilities, and shareholders' equity of a company is presented by aggregating or classifying it into subcategories of accounts.
The advantage of a classified balance sheet is that it easier to read and it makes it easier for readers to obtain required information than when the information is just presented in a large number of line items.
The classifications mostly used within a classified balance sheet include Intangible assets, fixed assets (or Property, Plant, and Equipment), current assets, current liabilities, long-term liabilities, and shareholders' equity.
In accounting, the addition of these classifications is required to match the accounting equation stated as follows:
Total assets = Total liabilities + Shareholders' Equity
Nod her head to show that she agrees and that it is polite to do so.
Answer:
Balance sheet recession
Explanation:
This description best fits the concept of a balance sheet recession. A balance sheet recession is a type of recession that happens when high levels of private debt force people and companies to focus on saving, as opposed to spending. This occurs because people become concerned with paying their debts. The lack of spending causes economic growth to slow down or decline.
