Question

why transactions are made in money (in points)

Answer 1

Hyy
In Accountancy we record only Monetary event.
Transactions are made in money because it serves as a standard unit of determining the value of a good or service.
Because it brings changes in financial position of business unit.
Hope it will help you....

Answer 2

Hey mate,

Here's your answer

Transactions are made in money because of the following reasons:-

1. A person holding the money can easily exchange it for any commodity or service that he or she might want.

2. Thus, everyone prefers to receive payments in money and the exchange the money for things that they want.

3. Take the case of shoe manufacturer, he wants to sell shoes in the market and buy wheat. The shoe manufacturer will first exchange shoe that he has produced for money, and the exchange the money for wheat.

Hope this helps you out!! ✌️✌️