Definition
A balance sheet that groups assets and liabilities into current (short-term) and non-current (long-term) categories. Makes it easier to assess liquidity.
C
Classified Balance Sheet
Related Terms
Current Assets
Assets expected to be converted to cash, sold, or used up within one year or the operating cycle, whichever is longer. Examples: cash, accounts receivable, inventory, prepaid insurance.
Current Liabilities
Obligations due within one year or the operating cycle. Examples: accounts payable, short-term notes, unearned revenue, accrued expenses.
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