The balance sheet groups individual accounts by type (asset, liability, or shareholders’ equity) and lists these accounts with their balances as of a specific date. The date of the balance sheet appears at the top of the balance sheet. The asset and liability categories further group individual accounts by the expected timing of cash receipts (for assets) or cash payments (for liabilities).
Common terminology describes items whose cash receipts or payments the firm expects will occur within one year as current assets or current liabilities, respectively. If the firm expects to collect or pay more than one year after the balance sheet date, the balance sheet classifies these as noncurrent assets and noncurrent liabilities, respectively.