Question

20 examples of business transactions

Answer 1

Answer:

A business transaction is an accounting term that relates to the events that occur with third parties (i.e., customers, vendors, etc.), having monetary value and have tangible economic value to the economy of the company as well as impacting the financial position of the company.

Explanation:

In simpler terms, business transactions are defined as the event occurring with any third party, which is measurable in monetary considerations and having a financial effect on the company. For example, in the case of a manufacturing company, the company needs to buy raw materials to be used in the production of finished goods. For the same, the company will enter into a transaction with the vendor, which will have a monetary value; this will affect the financials of the company.

#1 – Borrowing from Bank

#2 – Purchase Goods from Vendor on Credit Basis

#3 – Rent and Electricity of Premises Paid

#4 – Cash Sale of Goods

#5 – Interest Paid

#6– Cash Transaction and Credit Transaction

#7 – Internal Transaction and External Transaction