Question

which of the following events are business transaction:1) Purchasing of machinery for cash 2) Owner withdrawing goods for Personal use answer can have multiple options​

Answer 1

Answer:

Both Are Business Transaction As Both The Cases Involve Change In Financial Position Of The Business

Answer 2

Answer:

Both are Business Transactions as both the issues concern a change in the financial position of the business.

Explanation:

A business transaction exists as an economic event with a third party that exists recorded in an organization's accounting system. Such a transaction must be measurable in money.

Characteristics

• These transactions exist measurable in monetary terms.
• It concerns an event occurring between the organization and a third party.
• The transaction is documented for the entity, not for any individual purpose.
• They exist supported by the authorized and legitimate documents related to the event or transaction entered, e.g., in case of a sale, sale order & invoice will be regarded as legal documents for supporting the deal.

In both are Business Transactions as both the issues concern a change in the financial position of the business.

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