What you will learn to do: Illustrate proper reporting of current liabilities

As we discussed earlier, the reason current assets are reported on a classified balance sheet separately from noncurrent assets is so that analysts and investors can easily compare current assets to current liabilities.

See the balance sheets long description here.

The next section of the balance sheet would be noncurrent liabilities:

As you may have guessed, comparing total assets to total liabilities, owners’ equity for The Home Depot is actually a deficit. You’ll study the individual aspects of corporate equity in a later module, but for now, just notice that:

See the balance sheet long description here.

Notice that total liabilities (current and noncurrent) and owners’ equity (called stockholders’ equity for a corporation) of $51.236 billion is equal to total assets of $51.236 billion.