DEFINITION of 'Transaction'
1. An agreement between a buyer and a seller to exchange goods, services or financial instruments.
2. In accounting, the events that affect the finances of a business and must be recorded on the books. Transactions are recorded in what are known as "journal entries." Each entry describes a single transaction and states its date and amount.
INVESTOPEDIA EXPLAINS 'Transaction'
1. Here are some examples of activities you engage in that would be considered transactions:
- Buying or selling a stock
- Buying a cup of coffee
- Selling your freelance services
- Buying or selling a house
2. An accounting transaction will be recorded differently if the company uses accrual accounting rather than cash accounting. Accrual accounting records transactions when revenues or expenses are realized or incurred, while cash accounting records transactions when the business actually spends or receives money.
The exchange rate risk associated with the time delay between ...
A scenario wherein all or nearly all of the remaining investors ...
A bank form used in the United States to help prevent money laundering. ...
A type of securities transaction where a business does not need ...
The other party that participates in a financial transaction. ...
The direct conversion of ownership (from one ownership type to ...