Purchases in accounting involve the recording of monetary transactions that represent the acquisition of goods and services. The terms purchases, expenses and costs are often used interchangeably in accounting. When a purchase is made, the entry should be recorded on the company’s general ledger, typically as a debit to the asset account and a credit to the liabilities or expense accounts. This system of double-entry bookkeeping helps ensure accuracy and transparency when recording financial transactions. Purchases can be made at any time, for any amount, and for anything related to business operations. From ordering raw materials to buying office supplies, each transaction will have its own unique effect on a company’s financial situation.