Which of the following correctly represents the usual order for the asset subgroups on a classified balance sheet?

• A. Intangible Assets, Property, Plant, and Equipment, Long-Term Investments, Current Assets
• B. Property, Plant, and Equipment, Current Assets, Long-Term Investments, Intangible Assets
• C. Current Assets, Long-Term Investments, Property, Plant, and Equipment, Intangible Assets
• D. Long-Term Investments, Current Assets, Intangible Assets, Property, Plant, and Equipment

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a classified balance sheet. A classified balance sheet organizes assets and liabilities into subgroups to provide more detailed information about the financial position of a company.
2. Step 2: Learn the usual order of asset subgroups on a classified balance sheet. Assets are typically listed in order of liquidity, which refers to how quickly they can be converted into cash.
3. Step 3: Recognize the subgroups of assets. These include Current Assets (most liquid), Long-Term Investments, Property, Plant, and Equipment (fixed assets), and Intangible Assets (least liquid).
4. Step 4: Arrange the subgroups in the correct order based on liquidity: Current Assets, Long-Term Investments, Property, Plant, and Equipment, and Intangible Assets.
5. Step 5: Compare the given options to identify the correct sequence that matches the usual order of asset subgroups on a classified balance sheet.