Purchases

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

Definition

In Accounting, purchases do not mean buying anything but it has special meaning. When saleable goods or merchandise are bought in a business these are called purchases.

Example

  1. Stationery is purchased by a stationer is called “Purchases”
  2. Cloth purchased by a cloth merchant is called “Purchases”
  3. Cement purchased by a cement dealer is called “Purchases”

Types of Purchases

Purchases are of the following two types:

  1. Cash Purchases.
  2. Credit Purchases.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.