Which of the following is NOT a major component or section of a classified balance sheet as of December 31 for Wilson Trucking Company?

• A. Current Assets
• B. Long-term Liabilities
• C. Statement of Cash Flows
• D. Owner's Equity

Answer: (C)

Verified step by step guidance

1. Understand the structure of a classified balance sheet: A classified balance sheet organizes assets, liabilities, and equity into specific categories to provide clarity and detail about the financial position of a company.
2. Identify the major components of a classified balance sheet: These typically include Current Assets, Non-current Assets (such as Property, Plant, and Equipment), Current Liabilities, Long-term Liabilities, and Owner's Equity.
3. Recognize that the Statement of Cash Flows is a separate financial statement: It is not part of the classified balance sheet. Instead, it provides information about cash inflows and outflows during a specific period.
4. Compare the options provided in the question: Current Assets, Long-term Liabilities, and Owner's Equity are all major sections of a classified balance sheet, while the Statement of Cash Flows is not.
5. Conclude that the correct answer is 'Statement of Cash Flows,' as it is not a component of the classified balance sheet but rather a separate financial statement.