In a classified balance sheet prepared under U.S. GAAP, which set lists the standard asset subsections that are typically presented?

• A. Cash assets; Credit assets; Deferred revenue assets; Contingent assets
• B. Permanent assets; Temporary assets; Contra-assets; Memorandum assets
• C. Operating assets; Financing assets; Investing assets; Discontinued-operation assets
• D. Current assets; Investments; Property, plant, and equipment; Intangible assets; Other assets

Answer: (D)

Verified step by step guidance

1. Understand that a classified balance sheet organizes assets into specific categories to provide clear information about the company's financial position.
2. Recall that under U.S. GAAP, assets are typically grouped into standard subsections such as Current Assets, Investments, Property, Plant, and Equipment (PP&E), Intangible Assets, and Other Assets.
3. Recognize that Current Assets include cash and other assets expected to be converted to cash or used within one year or the operating cycle, whichever is longer.
4. Identify Investments as long-term assets not used directly in operations, such as stocks or bonds held for investment purposes.
5. Note that Property, Plant, and Equipment are tangible long-lived assets used in operations, Intangible Assets are non-physical long-term assets like patents, and Other Assets include miscellaneous long-term assets that do not fit into the other categories.