Most balance sheets are defined as “classified balance sheets” in that both the assets and liabilities are dichotomized into the categories of current and noncurrent. [In those industries in which the business operating cycle is longer than one year (such as the wine industry, the real estate industry, the financial services industry), classified balance sheets are not required under U.S. GAAP.]

How do you think the balance sheet classifications of current versus noncurrent convey important information about a firm’s financial condition to managers and shareholders?