Bills discounted with a bank are also a contingent liability, if the acceptor fails to meet the bill. There are two ways in which assets and liabilities are arranged in the Balance Sheet Balance Sheet items may be set out in order of either liquidity or permanence. Classified Balance Sheets Assets. The asset side of the balance sheet may be divided into as many as five separate sections... Liabilities. Just as the asset side of the balance sheet may be divided,... Equity. The appropriate financial statement presentation for equity depends on the nature... ...

Definition: A classified balance sheet is a financial statement that presents the assets, liabilities, and equity in relevant sub-categories that will be useful for end users. There is no required format or number of sub-categories, but the most common sub-categories are current and non-current.