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:
CGT
Capital Gains Tax, a tax on the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale.
Selling New Common Stock
The process whereby a company issues and sells additional shares of its common stock to investors to raise capital.
Cost of Equity
The return a company requires to decide if an investment meets capital return requirements and it can also be viewed as the risk-free rate of return plus a risk premium.
Capital Budgeting Projects
Capital budgeting projects are long-term investment decisions made by companies to invest in assets and projects for future growth and profitability.
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