The following list has some of the Assets and Liabilities that may be difficult to classify on a balance sheet. If people are inconsistent in classifying these items, it will be difficult to analyze trends and compare financial ratios between different farms. See how these farms/ranches are performing in relation to each other and make various comparisons.
Fill out this sheet and decide how they should be classified.

  • 1. Decide if the item is an asset or a liability. THEN
  • 2. Decide if it is a current asset/liability or a non-current asset/liability

** Hint: Remember the definition of an asset and a liability. Remember the time factor portion of current and non-current asset and liability definitions. This should help in determining each item below. Reread the portions of Assets and Liabilities if you are still unclear.

Legend: Asset – (A) or Liability – (L)   |  Current – (C) or Non-current –  (NC)

FM | Classifying Assets & Liabilities Exam

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