Accounting for Purchases and Cash Payments, Page 3

Accounting for Purchases and Cash Payments: Objectives

After you have completed this section, you will be able to:

1.  Explain the procedure for processing a purchase on account. 
2. Describe the accounts used in the process of purchasing. 
3. Identify controls over cash. 
4. Analyze transactions relating to the purchase of merchandise. 
5. Explain how to record purchases and cash payment transactions. 
6. Explain how to post to the accounts payable subsidiary ledger. 
7. Define the accounting terms introduced in this section.