Which of the following asset subsections are typically shown on a classified balance sheet?

• A. Cash Equivalents, Marketable Securities, Unearned Revenue
• B. Operating Assets, Non-operating Assets, Deferred Revenue
• C. Current Assets, Long-term Investments, Property, Plant, and Equipment, Intangible Assets
• D. Current Liabilities, Shareholders' Equity, Retained Earnings

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of a classified balance sheet. A classified balance sheet organizes assets, liabilities, and equity into specific categories to provide a clearer financial picture. The main sections typically include Current Assets, Long-term Investments, Property, Plant, and Equipment, Intangible Assets, Current Liabilities, and Shareholders' Equity.
2. Step 2: Focus on the asset subsections. Assets are resources owned by a company that have economic value. On a classified balance sheet, assets are divided into subsections such as Current Assets (e.g., cash, accounts receivable), Long-term Investments (e.g., stocks, bonds held for more than a year), Property, Plant, and Equipment (e.g., buildings, machinery), and Intangible Assets (e.g., patents, trademarks).
3. Step 3: Eliminate incorrect options. Unearned Revenue and Deferred Revenue are liabilities, not assets, and therefore do not belong in the asset subsections. Operating Assets and Non-operating Assets are not standard subsections on a classified balance sheet.
4. Step 4: Identify the correct subsections. The correct asset subsections typically shown on a classified balance sheet are Current Assets, Long-term Investments, Property, Plant, and Equipment, and Intangible Assets. These categories help stakeholders understand the nature and liquidity of the company's resources.
5. Step 5: Relate the asset subsections to the overall structure of the balance sheet. Assets are listed first, followed by liabilities and shareholders' equity. This structure ensures that the balance sheet adheres to the accounting equation: Assets = Liabilities + Shareholders' Equity.