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

question 30

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).
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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed during the next 12 months or within the business's normal operating cycle if longer.

Prepaid Insurance

A current asset account that represents the amount of insurance premiums paid in advance for coverage extending beyond the current accounting period.

Accounts Payable

Amounts a company owes because it purchased goods or services on credit from a supplier or vendor.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.