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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Effect of Purchase on Credit
Q What’s the effect of purchase on profit?
The answer gave: None – with the reason that the goods haven’t been sold yet.
However, sold or not, purchases do form part of the COS, so how do we know whether or not they’ve been sold?
Buying goods is not what makes profit – it is only when goods are sold that a profit is made.
I’ll bear that in mind – thanks. 🙂
You are welcome 🙂