Classified Balance Sheet

A classified balance sheet is a kind of balance sheet in which the assets, liabilities and equity accounts are further categorized into sub accounts or sub categories. The classification of the accounts into sub categories is quite useful as it make information more manageable and more readable for the accountants and decision makers. The classification of accounts into further sub categories in a classified balance sheet can be done as under:-

  • Current Assets
  • Long term Investments
  • Fixed Assets
  • Intangible Assets
  • Other Assets
  • Current Liabilities
  • Long Term Liabilities
  • Shareholder’s Equity

All these classification must be added in such a way that they must fulfill the basic accounting equation that is :-

Total Assets = Total Liabilities + Shareholder Equity

One thing must be kept in mind that this classification varies from industry to industry and can be customized by industry according to their own requirement. In the classified balance sheet the base account can be further divided into number of different subcategories such as asset account can be categorized as:-

  • Cash and cash equivalents
  • Trade receivables
  • Expenses that are prepaid
  • Investments
  • Inventory
  • Saleable Assets

Long term Investments

  • investment made by company in other companies

Fixed Assets

  • Computer hardware and software
  • Furniture and office fixtures
  • Production equipment
  • Office Equipment
  • Accumulated Depreciation

Intangible Assets

  • Intangible assets
  • Accumulated amortization
  • Good will
  • Patents and copyrights

Current Liabilities

  • Trade Payables
  • Accrued expenses
  • Tax Liabilities
  • Loan Payables
  • Financial Liabilities
  • Saleable Liabilities



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