Credit Purchases VS Cash Purchases With Similarities

Credit Purchases means purchased goods, services or supplies on credit or account from suppliers without making any cash payments immediately whereas Cash Purchases means purchased goods, services or supplies from suppliers for Cash.

Credit Purchases works under Accrual Basis of Accounting while Cash Purchases operates under Cash Basis of Accounting.

Similarities Between Credit Purchases And Cash Purchases In Accounting

 1. Both are the parts of Total Purchases

2. Both are the Direct Expenses incurred for the purpose of earning Revenues for the business.