When employees collect cash for a sale, a control issue could arise since they might be inclined to steal.
<h3>Explain about the cash purchases?</h3>
A business makes a cash purchase when it pays for products or services right away after ordering or receiving them. The supplier does not grant credit. Account payable is not established. Regardless of whether the company utilizes accrual basis accounting or cash basis accounting, the resulting expense is promptly reported to an expense account.
In contrast to the income statement, the cash flow statement records cash purchases more directly. In actuality, precise cash outflow events are completely absent from the revenue statement.
For instance, a customer might enter a store and buy an apple using a debit card. Debit cards operate similarly to cash in that they immediately deduct the amount due for the apple from the buyer's bank account. There is a cash exchange here.
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What is the question that you are trying to ask maybe i can help
Answer:
you can use that to do money and deviding other things
Explanation:
