A purchase asset journal entry is an accounting transaction in which a business records the acquisition of an asset, such as inventory or equipment. The entry includes the amount paid for the asset and any applicable taxes, and it can be used to track the cost of the asset over its useful life. By accurately tracking these entries, businesses can ensure that they have an accurate understanding of their financial standing at any given time. So, if you’re looking to acquire an asset, make sure you record that purchase with a purchase asset journal entry—it’s good business!