Transaction Definition - What is a Transaction?

Transaction definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. The term Transaction can be defined as: Exchange of economic consideration affecting an entity’s financial position that can be reliably measured. Transaction are the economic events that the accounting process records through the use of a double entry accounting system, through the use of debits and credits, common transactions being the sale of inventory, sale of service, or bill for utilities. Data about transactions is what makes up most of accounting information, this transaction data being compiled into relevant forms, often in the form of financial statements.
Why Learn Accounting - Financial Accounting / Managerial Accounting
   • Why Learn Accounting - Accounting Beg...  
101 Double Entry Accounting System Explained - Accounting Equation
   • Double Entry Accounting System Explai...  
101 Cash vs Accrual - Cash Method / Accrual method differenc
   • 101 Cash vs Accrual - Cash Method / A...  
101 Revenue Recognition Principle
   • 101 Revenue Recognition Principle  
Double Entry Accounting System Explained - Balance Sheet
   • Double Entry Accounting System Explai...  
101 Income Statement Introduction
   • 101 Income Statement Introduction  
101 Accounting Objectives - Relevance Reliability Comparability
   • 101 Accounting Objectives - Relevance...  
101 Transaction Rules - Accounting Equation
   • 101 Transaction Rules - Accounting Eq...  
101 Transaction Throught Process / Steps - Accounting Equation
   • 101 Transaction Thought Process / Ste...  
101 Owner Deposits Cash Transaction Accounting Equation
   • 101 Owner Deposits Cash Transaction A...  
101 Work Completed for Cash Transaction Accounting Equation
   • 101 Work Completed for Cash Transacti...  
100.110 Pay Employee with Cash Transaction Accounting Equati
   • 100.110 Pay Employee with Cash Transa...  
200 Debits & Credits Normal Balance - Double Entry Accounting Sy
   • 200 Debits & Credits Normal Balance -...  
200 Debits & Credits - One Rule to Rule Them All
   • 200 Debits & Credits - One Rule to Ru...