A business transaction is a financial event recorded through the accounting process in a business organization’s accounting system. All events are not business/accounting transactions but every business transaction is an event. An event should be a transaction if that event has the following features. There are many features of business transaction which are described below:
Features of business transaction
- It is measurable in terms of money.
- It changes the financial position of the business.
- It has dual aspects.
- It must be an event visible or invisible
- It should be independent and complete.
- It may be a historical or future nature.
- It has documentary evidence.
- It may be a cash basis or accrual basis.
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