Explain transaction in detail and give example
Answers
Answer:
A transaction is a business event that has a monetary impact on an entity's financial statements, and is recorded as an entry in its accounting records. Examples of transactions are as follows: Paying a supplier for services rendered or goods delivered. ... Paying an employee for hours worked.
Examples of Transactions
Purchase of inventory on cash or credit. Purchase of an asset. Disposal of an asset. Payment of salaries to employees.
A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial assets. ... The cash accounting method records a transaction only when the money is received or the expenses are paid
There are four main types of financial transactions that occur in a business. These four types of financial transactions are sales, purchases, receipts, and payments. Let's take a minute to learn about each one: Sales are the transactions in which property is transferred from buyer to seller for money or credit.
Explanation:
Examples of financial transactions include cash receipts, deposit corrections, requisitions, purchase orders, invoices, travel expense reports, PCard charges, and journal entries.
Types of Accounting Transactions based on the Exchange of Cash. Based on the exchange of cash, there are three types of accounting transactions, namely cash transactions, non-cash transactions, and credit transactions.
Types of Bank Transactions
A bank transaction is any money that moves in or out of your bank account. Types of bank transactions include cash withdrawals or deposits, checks, online payments, debit card charges, wire transfers and loan payments.