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Place a number, 1 through 7, in front of each of the following balance sheet categories to designate the order in which they are to be presented in a classified balance sheet. - Long-term investments - Current liabilities - Stockholders' equity- Intangible assets - Current assets - Long-term liabilities - Property, plant, and equipment

Respuesta :

Explanation:

Classified balance sheet presents information about assets,liabilities and shareholder's equity of an entity.Order in which they are presented is as follows"

  1. Current assets-it includes cash and cash equivalents like prepaid expenses,inventories,assets held for sale.
  2. Long term investments-it includes investment made in other companies
  3. Property,plant and equipment-it includes all the fixed assets.
  4. Intangible assets-it includes assets which cannot be touched like goodwill.
  5. Current liabilities-it includes trade and other payables, accrued expenses,liabilities held for sale
  6. Long term liabilities-It includes long term loans,Deferred tax liabilities.
  7. Stockholder's equity-It includes share capital.additional paid up capital,retained earnings.

Parrain

The order in a classified balance sheet is:

  1. Current Assets
  2. Long term investments
  3. Property, plant and equipment
  4. Intangible assets
  5. Current liabilities
  6. Long-term liabilities
  7. Stockholders' equity

When it comes to a classified balance sheet, the assets are listed first and they are listed in decreasing order of liquidity.

  1. Current assets such as cash and inventory are quite liquid so go first.
  2. Long term investments can be sold off and the cash recovered so these are next
  3. Property, plant and equipment are a bit difficult to offset so come third.
  4. Intangible assets can only be realized when the company is sold so these are not liquid

Then the liabilities come in increasing order of payment term:

  1. Current liabilities come first as they have to be paid off within the year
  2. Long term liabilities are next as they have a longer payment period

Finally there will be stockholder's equity.

In conclusion, assets come first on a classified balance sheet and then are followed by liabilities and lastly by equity.

Find out more at https://brainly.com/question/9452212.

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