Final answer:
Employee purchases made with cash or purchase cards are often recorded immediately for practical and internal control reasons, but according to accrual accounting principles, expenses should be recorded when they are incurred.
Step-by-step explanation:
The statement that employee purchases using cash or purchase cards must be recorded immediately as a business expense is partially true. In accounting practices, expenses should be recorded when they are incurred rather than when payment is made, according to the accrual basis of accounting. However, for practical purposes, many small businesses operating on a cash basis may record the transaction when the cash is actually disbursed. Furthermore, for internal control and budgeting purposes, companies may require immediate recording of the purchase to track expenses in real-time, especially when using purchase cards specifically designed for business expenses.