It's Easier to Organize Files in Google Docs

Google Docs now lets you move a file to a folder without using the Docs list. Just click the "folder" icon next to the title of the file and you can pick one or more folders. This works for documents, spreadsheets, presentations, drawings, PDF files and any other files.

Google uses the word "collection" instead of "folder" and that's confusing for both Google Docs users and Google's engineers. When you mouse over the new icon, the tooltip reads "folders". Google Docs collections are actually hierarchical labels because you can place a file in multiple collections.

{ Thanks, Cougar. }