Question

The term 'transaction' is best defined as?

1) An event that cannot be measured for financial purposes
2) Any event that is reported in the financial statements of a company
3) Any event that involves cash payments and cash receipts
4) A sale for a customer

Answer 1

A transaction is an event that involves cash payments and cash receipts. It refers to the exchange of goods, services, or assets using money as a medium of exchange.

Step-by-step explanation:

The term 'transaction' is best defined as any event that involves cash payments and cash receipts. It refers to the exchange of goods, services, or assets between two or more parties, where money is used as a medium of exchange. Transactions can include purchases, sales, payments, and receipts.