Question

ncert defines transaction as a event which involves value between 2 entities. And according to DK GOEL reference book- event is the result of the transactions . If event is the result of every transaction then how transaction is a value based event.? 11 accountancy

Answer 1

Answer:

An accounting event is a transaction that is recognized in the financial statements of an accounting entity. A company must record in its accounting records any economic event that impacts the company's finances. Examples of accounting events include such things as recording the depreciation of an asset, the payment of dividends to investors, the purchase of materials from a supplier, and the sale of goods to a customer.