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Explain the difference between an annotated tax service and a topical tax service. Give an example of each.
Bank Loan Payable
A financial obligation representing money borrowed from a bank that a company is required to pay back with interest by a specified future date.
Prepaid Insurance
An asset account on the balance sheet representing insurance payments made in advance for coverage that will extend over a future period.
T Account
A visual representation used in accounting to depict the debit and credit sides of an account, helping in the preparation of financial statements.
Credit Balance
A situation where the total credits in an account exceed the total debits, often indicating the amount owed to a creditor.
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