Which of the following describes a feature of a classified balance sheet?

A classified balance sheet is designed to provide a clear and organized view of a company's financial position by separating its assets and liabilities into short-term and long-term categories. This classification helps users of the financial statements, such as investors and creditors, to quickly understand the liquidity and financial health of the organization.

By distinguishing between current assets (which are expected to be converted to cash or used up within one year) and long-term assets (which will provide economic benefits over a longer period), as well as current liabilities (to be settled within one year) and long-term liabilities (obligations that extend beyond one year), stakeholders can assess liquidity, operational efficiency, and long-term viability more effectively.

This structure contrasts with a simple balance sheet, which might not provide this level of detail. The classified format is especially useful for understanding the timing and availability of resources for meeting obligations, which is crucial for decision-making by various stakeholders.