Definition: 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.