Transaction

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 a seller with cash and a note in order to obtain ownership of a property formerly owned by the seller.
  • Paying an employee for hours worked.
  • Receiving payment from a customer in exchange for goods or services delivered.