Which of the following best describes the organization of the balance sheet?

The organization of the balance sheet is effectively represented by dividing assets into current and long-term categories. This structure provides valuable insights into a company's financial health, aiding stakeholders in evaluating its liquidity as well as its long-term solvency. Current assets typically include cash, accounts receivable, and inventories that are expected to be converted to cash or consumed within a year. Long-term assets, on the other hand, include investments, property, plant, and equipment that provide value over a longer period.

Separating assets in this manner allows users of the balance sheet to assess the company's ability to meet short-term obligations while also understanding the resources available to support future operations and growth. This categorization is a standard practice in financial reporting and reflects a company’s financial structure more clearly than combining all items or focusing solely on current assets and liabilities.