Which section of a classified balance sheet would Austin refer to in order to find a summary of all general ledger accounts classified as fixed assets?

• A. Current Liabilities
• B. Current Assets
• C. Property, Plant, and Equipment
• D. Intangible Assets

Answer: (C)

Verified step by step guidance

1. Understand the structure of a classified balance sheet, which organizes assets, liabilities, and equity into specific categories for clarity and analysis.
2. Recognize that fixed assets are long-term tangible assets used in the operations of a business, such as buildings, machinery, and equipment.
3. Learn that the section of the classified balance sheet where fixed assets are summarized is typically labeled 'Property, Plant, and Equipment.' This section includes all general ledger accounts related to fixed assets.
4. Differentiate 'Property, Plant, and Equipment' from other sections like 'Current Assets,' which include short-term assets, and 'Intangible Assets,' which include non-physical assets like patents and trademarks.
5. Refer to the 'Property, Plant, and Equipment' section of the classified balance sheet to find the summary of all fixed assets, ensuring you understand its role in representing the company's long-term operational resources.