PURCHASES METHOD -A method of accounting for goods, such as materials and supplies, in which the acquisition cost is recognized as an expense upon purchase of the goods rather than upon their use.
The purchases method is popular with businesses that maintain small inventories of supplies.
mnli hypothesis: The purchases method is popular with businesses that maintain small inventories of supplies. premise: PURCHASES METHOD -A method of accounting for goods, such as materials and supplies, in which the acquisition cost is recognized as an expense upon purchase of the goods rather than upon their use.