Classified Financial Statements

Classified Balance Sheet

Classifies Assets into 2 main groups Classifies Liabilities into 2 main groups.

Current Assets

Assets which can easily be converted into cash (Cash, bonds/stocks, A/R, Prepaid Expenses). The are listed in order of liquidity

Fixed Assets

Assets which cannot be easily converted into cash (Land, building, equipment, delivery truck) Listed in terms of useful life

Current Liabilities

Liabilities that must be paid within a year (A/P, Salaries Payable, Loans Payable) Listed in the order when they are to be paid

Long-Term Liabilities

Liabilities that do not have to be paid for at least a year. (Mortgage Payable, Bank Loan, Loan Payable) Listed in the order when they are to be paid

Statement of Owner’s Equity

This statement takes place of the owner’s equity section on the balance sheet. The ending owner’s equity figure from this statement is Transferred to the balance sheet instead of the full calculation.

Schedule of Accounts Receivable and Accounts Payable

Schedule of A/R

Lists all the company’s debtors and all the amounts they owe the company

Schedule of A/P

Lists all the company’s creditors and all the accounts the company owes them.