Discuss the purpose of a classified balance sheet. Include a description of the major balance sheet classifications including: current assets, plant and equipment, current liabilities, and long-term liabilities.

A classified balance sheet provides more detail about the firm's assets and liabilities. The major categories included for assets are current assets, and plant and equipment assets. Current assets are cash and other assets that will be converted into cash or used up during the normal operating cycle or one year, whichever is longer. Plant and equipment assets are long-lived assets that are used in the production or sale of goods or services.
The major categories included for liabilities are current liabilities and long-term liabilities. Current liabilities are debts or obligations that must be satisfied within one year or one operating cycle, whichever is longer. Long-term liabilities are debts that are not due for a comparatively long period, usually for more than one year or one operating cycle, whichever is longer.