Asked By: Melany Smith
Date created: Sat, May 29, 2021 7:51 AM
Date updated: Thu, Sep 29, 2022 10:17 PM
Top best answers to the question «Is purchasing inventory an expense»
- When you purchase inventory, it is not an expense. Instead you are purchasing an asset. When you sell that inventory THEN it becomes an expense through the Cost of Goods Sold account. So what happens when you categorize your inventory as an expense immediately? You will understate your assets...