The purchase and sale of goods for cash or on credit, the receipts and payments of cash etc., are termed as business transactions since these activities involve exchange of values between parties.Ī business transaction therefore results in some property, goods or services changing hands.
A business transaction is a business activity involving the exchange of money and goods or services for money or for a right to collect money between accounting entities – person (natural and artificial) and which can be objectively measured. Accounting Process is primarily concerned with the business transactions.
