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  4. How should I interpret the terms "sales" and "purchases?" Many organizations and transactions types are really not related to sales or the organization is not involved in sales.

How should I interpret the terms "sales" and "purchases?" Many organizations and transactions types are really not related to sales or the organization is not involved in sales.

"Sales" and "receipts" should be understood as interchangeable. Likewise, "Purchases" and "payments" should be understood as interchangeable. Intercompany receipts or payments should still be reported on an accrual basis.

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