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

question 36

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 in which the account balance is reported, and in Column 4 the account's nature (permanent/temporary).
- $\begin{array} { | l | l | l | l | l | } \hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \\\hline \text { Purchases } & & & & \\\hline\end{array}$

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Definitions:

Total Equity

Total equity represents the value left for shareholders after all liabilities have been subtracted from the total assets of a company.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage and financial health of the company.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, indicating the total resources.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including debts, accounts payable, and other liabilities.