Question

Explain Transactions in detail by providing an example.

Answer 1

Answer:

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.

Explanation:

Examples of transactions are as follows: Paying a supplier for services rendered or goods delivered. Paying a seller with cash and a note in order to obtain ownership of a property formerly owned by the seller. Receiving payment from a customer in exchange for goods or services delivered.

Hope this helps you dear

Answer 2

Answer:

Transactions :

• 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.

Examples of accounting transactions are:

• Sale in cash to a customer.

• Sale on credit to a customer.

• Receive cash in payment of an invoice owed by a customer.

• Purchase fixed assets from a supplier.

• Record the depreciation of a fixed asset over time.

• Purchase consumable supplies from a supplier.

• Investment in another business.