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  2. The difference between purchases and expenses is as follows12:
    • Purchases: Refers to the acquisition of goods that a company intends to sell to customers.
    • Expenses: Represents the cost of goods or services that have been used up or expired over a period of time.
    Learn more:
    An expenditure represents a payment with either cash or credit to purchase goods or services. It is recorded at a single point in time (the time of purchase), compared to an expense that is recorded in a period where it has been used up or expired.
    corporatefinanceinstitute.com/resources/accountin…
    In the context of companies that sell merchandise, the term purchases refers to the purchases of goods that are intended to be sold to customers. The cost of the goods that are sold are expensed on the income statement.
    www.accountingcoach.com/blog/purchases-expens…
     
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