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- In financial statements, "purchase" refers to12:
- The cost of buying inventory during a period for the purpose of sale in the ordinary course of business.
- An expense included in the income statement within the cost of goods sold.
- The amount of goods a company buys over the course of the year.
- Information recorded about the kind, quality, quantity, and cost of goods added to inventory.
- Purchases are offset by Purchase Discounts, and also Purchase Returns and Allowances.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Purchase is the cost of buying inventory during a period for the purpose of sale in the ordinary course of the business. It is therefore a kind of expense and is hence included in the income statement within the cost of goods sold.accounting-simplified.com/financial/purchases/In accounting, purchases are the amount of goods a company buys over the course of the year. It also refers to information that should be recorded about the kind, quality, quantity, and cost of goods that are purchased and added to inventory. Purchases are offset by Purchase Discounts, and also Purchase Returns and Allowances.learn.saylor.org/mod/book/view.php?id=53789&ch… - People also ask
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