What is a transaction– Explanation
Any event that takes place between two or more persons or things and that event affects the financial position of the business and also that event must be expressed in terms of money, then we can say that the transaction is occurred in the business. Explanation: From the definition, we must consider the following terms in order to understand the definition of transaction: 1. Event Event means "Anything that happens". There are two types of events: 1. Monetary Events Those events that involve the use of money and that event can change the financial position of the business. Examples of such are transportation expenses, ceremonial expenses, etc. 2. Non-Monetary Eve nts Such events which do not involve the use of money and that events do not change the financial position of the business are called Non-Monetary Events. Examples are delivering the speech, Dancing, etc. But in Accounting Event has special meaning...