1. Transaction FEA: 3 rd course Dadoboeva F.

2. Transaction is:  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.

3. Transaction is:  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.

4. Types of transactions:  Simple Transactions  Some transactions are simple exchanges. Paying two dollars for a cup of coffee is a business transaction. Getting a haircut, eating at a restaurant, even buying something expensive like a washer or dryer can be a simple transaction. Most simple transactions are singular events which may or may not be repeated and take place between a vendor and a customer.

5. Complex Transactions  Many transactions are complex. Purchasing an item with credit involves a series of transactions before the purchase can be completed. Setting up a vacation through a travel agency requires booking hotels, flights, possibly rail or boat travel, tours and making other arrangements, all of which require business transactions. Getting a mortgage to buy a home or building requires numerous transactions with the lender, title company, real estate agency, buyer, seller, loan underwriter and more.

6. Ongoing Transactions  Some business transactions are ongoing. Your relationship with your bank is an ongoing business transaction that may encompass multiple types of transactions. A contract between a supplier or vendor and another business can involve multiple business transactions between the vendor, its employees, its suppliers, its customer and the customer's market. There are also international transactions between countries; a loan from one government to another or a sales of goods and services could become an extremely complex ongoing transaction.