Final answer:
The items are categorized as current assets or property, plant, and equipment: accounts receivable, cash, prepaid insurance, and supplies are current assets; building and office equipment are property, plant, and equipment. Money on a bank's balance sheet may not be present due to fractional reserve banking. The value of loans in the secondary market is affected by the borrower's payment history and changes in interest rates.
Step-by-step explanation:
Current assets are assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business. Property, plant, and equipment, on the other hand, are long-term assets used for production or administrative purposes and are used for more than one year.
As for why the money listed under assets on a bank balance sheet may not be in the bank, it is because banks operate under a fractional reserve banking system where they lend out most of the deposits they receive, keeping only a fraction as reserves. This can create an asset-liability time mismatch, where bank assets (loans) can take a long time to be repaid, while liabilities (customer deposits) can be withdrawn on demand.