 In this discussion, we will discuss the discussion question of discuss the characteristics of the classified balance sheet. So we're considering the balance sheet here. So we could start off there. We could just say, hmm, if I don't know what the classified means, we can at least describe the balance sheet. Now, obviously, the balance sheet is going to be one of our major financial statements. It's going to include assets, liabilities, and equity. So we could say, well, the classified balance sheet is a balance sheet. The balance sheet includes the point in time where a company stands, and its major components are going to be the accounting equation type components of assets, liabilities, and equity. We know the balance sheet is in balance by the total assets equaling total liabilities and equity. Now, when we get to the classified balance sheet, that sounds kind of like it's a sophisticated thing here, but the classified balance sheet is what you probably already know because most of the time, we deal with a classified balance sheet, meaning we don't just have an unclassified balance sheet which would just be all assets grouped, you know, listed just under assets and having one subgroup of all assets, and then liabilities just having one group of all liabilities, and so on, and equity having one group. What we do do is we see that we have subgroups. The most common subgroup you're probably starting to be aware of when you look at these financial statements is you see assets, and then you see current assets, and so that's a subgroup of assets. When you see liabilities, you then see current liabilities. So that's going to be a subgroup. So whenever they're asking about the classified balance sheet, we're going to say, well, it's going to be a balance sheet that has more than just assets, liabilities, and equity. It has other useful subgroups that helps us to read the financial statements better, and then you can go through and list what those subgroups are, and if we think through the balance sheet, we've got the assets once again, and then we've got the current assets, and then we can define current assets. Those are things that are going to be used pretty soon, usually generally within a year. You could actually list some current assets, including cash, accounts receivable, inventory, paid expenses, and go through a few current assets for examples, and then we're going to have long-term investments, and those are going to be types of things that we aren't expecting to convert in any short period of time, and so then we're going to have the property plant and equipment. We could just call it plant. We could call it depreciable assets, but those are going to be the things that, again, they're going to be longer-term investments. They're not stuff that we're going to consume anytime soon. We're going to have them for a period of time, like buildings, like the equipment, and those are typically going to be depreciated, except for land, which will also be included there, and then we could go further than that and say that we might have intangible assets as well, and not every balance sheet, of course, will have all these, depending on whether or not they have intangible, especially intangible assets, and long-term investment groupings may not be there in some companies and may in others, but those are the groups that we could break these out into. Intangible assets being those things that can't be touched, but still have values, something like goodwill, something like a patent, and so those could be amortized over time, and those are going to be the asset subgroups. We go to liabilities. We once again have liabilities, but we also have current liabilities, those liabilities that will be due within one year, and long-term liabilities. For the equity section, it's going to differ between whether we're a sole proprietor or partnership or a corporation, but the equity section will typically, for sole proprietors, just going to have the capital account will represent the equity section. For the corporation, the equity section could be divided into the capital stock, or the stock, and it could have the retained earnings as well. It's going to give basically the components of investing into the company in terms of purchasing of stock and the retained earnings, the accumulation of revenue over a certain time period. That's going to be, we can get into the components of the classified balance sheet. You could expand on this if you're adding the essay question with a lot of detail, if you have time to do it. You could say why we would do that, and we mentioned earlier that we're going to do that, break this out, rather than just assets, liabilities, and equity to more detail, why would we do that? Because it's helpful for decision-making, meaning we can do a lot more useful ratios by comparing current assets and current liabilities. We can do things like liquidity ratios and say, is it possible for us to pay our short-term obligations, those obligations being due within a year, with just our current assets? And do liquidity testing and that kind of information that most users of financial statements will want to do, and this then making it easier for them to do so.