Final answer:
Notes payable and current maturities of long-term debt are categorized as financing accounts. They are crucial for understanding a company's financial obligations and are not considered cash, operating, or investing accounts.
Step-by-step explanation:
Notes payable and current maturities of long-term debt are classified as (c) Financing accounts. They represent financial obligations a company must repay in the future and are part of a company's debt financing strategies. These are not operating accounts like cash, which would be used for daily business transactions, nor are they investing accounts that typically reflect investments in long-term assets such as equipment or securities.
On a company's balance sheet, notes payable often represent amounts that must be repaid within the next year, while current maturities of long-term debt refer to the portion of a longer-term loan that is due within the coming year. This distinction is important for understanding a company's liquidity and financial health.
Loans are a classic example of bank assets, given that they generate interest income over time. Other assets include cash reserves held at the Federal Reserve and bonds. These items on a balance sheet are essential in evaluating a bank's stability and net worth.