Question

Describe an unclassified balance sheet. Multiple choice question. An unclassified balance sheet is one where assets are separated into operating assets and non-operating assets. An unclassified balance sheet organizes assets and liabilities into important subgroups. An unclassified balance sheet lists all operating expenses separate from its non-operating expenses. An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity.

Answer 1

Answer:

D. An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity.

Explanation:

A balance sheet can be defined as a financial statement used in reporting an organization's assets, capital, liabilities, debt and equity at a specific period of time.

An unclassified balance sheet is one whose items are broadly grouped into assets, liabilities, and equity.

This ultimately implies that, an unclassified balance sheet is typically used to report an organization's assets, liabilities and equity without separating or grouping them into specific classes (sub-classification of assets, liabilities or equity). Therefore, the financial items are only listed in an order of liquidity with their total.

An unclassified balance sheet is mainly used by small businesses and for internal reporting of financial items.