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

question 45

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 in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
- $$\begin{array} { | l | l | l | l | l | } \hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \\\hline \text { Discounts lost } & & & & \\\hline\end{array}$$

Grasp the concept of merit rating and its effect on state unemployment tax rates.

Understand the accounting treatment and classification of accrued vacation benefits and other estimated liabilities.

Recognize the characteristics, recording, and reporting requirements for notes payable.

Understand the factors that affect the amount of federal income tax withheld from employee pay including withholding allowances.

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Definitions:

Extra Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to factors other than a direct income increase.

Endowment

The total resources available to an individual or entity, which can include wealth, assets, or resources in an economic context.

Normal Good

A type of good for which demand increases as the income of individuals increases, holding everything else constant.

Wage Rate

The standard amount of compensation given to employees for services rendered, usually expressed per hour or year.