Classified Balance Sheets

1.     CheckPoint: Classified Balance Sheets

·         Write a 200- to 300-word response explaining what information would be found in each of the following groupings on a classified balance sheet and how that data might indicate the future success or failure of a business:

o    Current assets

o    Long-term investments

o    Property, plant, and equipment

o    Intangible assets

      A balance sheet contains all kinds of information.  Some of the items you can expect to find on a balance sheet are your current assets, long-term investments, tangible assets and intangible assets.  Current assets are items that you have on hand now and can be measured in monetary value such as inventory, marketable securities, or accounts receivable.  Inventory is items that you use to manage your business.  A car dealership would list their cards as inventory.  The Avon representative would have the items they sell listed as inventory.   Marketable securities are items that can be easily and quickly converted to cash at a reasonable price, such as stocks or bonds. Accounts receivable is any cash you take in everyday while running your business.  Long-term investments are items that take more than ten years to mature.  Your stocks or shares would be listed under long-term investments.  Your tangible assets are items that are physical which can be such things as property, like your office building and the land it is on, plant machinery and property, or equipment you use to run your business.  Equipment covers everything from office supplies to company vehicles.  Construction equipment can also be found under your equipment section of your tangible assets; everything from bulldozers and cranes to shovels and rakes.  Your intangible assets are items of value that cannot be physically touched.  These are items like your brand name, any franchises you own, the trademark you use, or even patent.