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doubt
we also purchase fixed assets in business to generate revenue...so as per u it is also an expense
Fixed asset gives u revenue for many years, goods we purchase to trade are for short time. Fixed asset is intended to use and not for sale.
In accounting language purchase material is called stock not assets (if purchase for trading).
There is difference between goods/stock and assets. Assets means which help to get the profit and which it not traded. While goods/stock is traded to get the profit.
So purchases is treated as nominal account.
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