1. 3.1 Business Transactions

2. Business Transactions
On any given day, many events occur that cause the financial position of a business to change. These are called – business transactions
If a business buys something, this is a transaction

3. Business Transaction Example
Let’s say our business buys 10 computers for $15,000
The business pays $5000 from bank and the rest will be paid later
Assets increase by how much?
Accounts payable increase by how much?
Assets increase by $15,000, bank goes down by $ Accounts payable increase by $10,000