For Each of the Following, Identify in Column 1 the Category

question 58

Essay

For each of the following, identify in Column 1 the category to which the account belongs, in Column 2 the normal balance for the account, in Column 3 the financial statement(s) on which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
- $$\begin{array} { | l | l | l | l | l | } \hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \\\hline \begin{array} { l } \text { Cost of goods } \\\text { sold }\end{array} & & & & \\\hline\end{array}$$

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Definitions:

Adjusting Journal Entries

Accounting entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Net Income

The total profit of a company after all revenues and gains are added and all expenses and losses are subtracted.

Accounts

Refers to records in bookkeeping that track financial transactions and their impacts on specific areas, such as assets, liabilities, and equity.

Accrual Accounting

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.