Meaning & use
purchased on account
Last updated
Meaning
phrasefixed phrasebusinessfinance
Bought with an agreement to pay later, rather than paying immediately.
Grammar: Used after a noun or as a past participle phrase: goods purchased on account.
Patterns
- goods purchased on account
- items purchased on account
- be purchased on account
The company recorded all items purchased on account in its ledger.
Machinery purchased on account must be paid within thirty days.
She bought office supplies purchased on account to manage cash flow.
Common combinations
- goods purchased on account
- The goods purchased on account were delivered yesterday.
- buy something on account
- We often buy raw materials on account.
- purchased on credit
- The car was purchased on credit.
Synonyms and how they differ
- bought on credit
- This is a more general everyday phrase; 'purchased on account' is the formal accounting term.
Opposites
Commonly confused: purchased on account or on account of?
purchased on account vs on account of
This means 'because of', not 'bought with deferred payment'.
Practice
If a business buys supplies 'purchased on account', what does it mean?
Choose one answer.
'On account' means the buyer will pay later, so option 1 is correct. Paying immediately or using a credit card are different payment methods, and returning goods is not related.
Make it your own
Write a sentence using “purchased on account”, then check it and compare it with the examples above.