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

question 22

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 on which the account balance is reported,and in Column 4 the nature of the account (permanent/temporary).
Example:
$$\begin{array} { | l | l | c | c | c | } \hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \\\hline \text { Cash } & \text { asset } & \text { debit } & \text { palance sheet } & \text { permanent } \\\hline\end{array}$$
- $$\begin{array} { | l | l | l | l | l | } \hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \\\hline \text { Capital } & & & & \\\hline\end{array}$$

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Definitions:

Employee Options

A form of employee benefit that gives employees the right to purchase company stock at a set price at a future date.

Debt Options

Financial instruments giving the holder the right, but not the obligation, to deal with debt under specified conditions.

Calls

Options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a specified time.

American Options

Options that can be exercised at any time up to the expiration date, unlike European options which can only be exercised on the expiration date.