Question

Exchange of goods and services either for cash or any other goods or services is known as _______________ .

• A. Transaction
• B. Narration
• C. Monetary transaction
• D. None of the above

Answer 1

The correct option is A Transaction

A event involving some value between two or more entities. It can be purchase of goods, receipt of money, payment to a creditor, incurring expenses, etc. A transaction is a business event that has a monetary impact on entity's financial statements, and is recorded as an entry in its accounting records. A high-volume transaction, such as billing to a customer, may be recorded in a specialized journal, which is then summarized and posted to the general ledger. Alternatively, lower-volume transactions are posted directly to the general ledger. A transaction can be a cash transaction or a credit transaction.