Fixed assets are ordinarily presented on a classified balance sheet in which section?

• A. Stockholders’ equity
• B. Current liabilities
• C. Noncurrent assets (property, plant, and equipment)
• D. Current assets

Answer: (C)

Verified step by step guidance

1. Understand the structure of a classified balance sheet, which organizes assets and liabilities into current and noncurrent categories to provide clear financial information.
2. Recall that fixed assets, also known as property, plant, and equipment, are long-term tangible assets used in operations and are not expected to be converted into cash within one year.
3. Identify that current assets include items like cash, inventory, and receivables, which are expected to be liquidated within a year, so fixed assets do not belong here.
4. Recognize that current liabilities are obligations due within one year, and stockholders' equity represents owners' claims, so fixed assets are not presented in these sections.
5. Conclude that fixed assets are presented under the 'Noncurrent assets' section on a classified balance sheet, specifically under property, plant, and equipment.