8 Essential Features of Business Transaction

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 transaction 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

  1. It is measurable in terms of money.
  2. It changes the financial position of the business.
  3. It has dual aspects.
  4. It must be an event visible or invisible
  5. It should be independent and complete.
  6. It may be a historical or future nature.
  7. It has documentary evidence.
  8. It may be a cash basis or accrual basis.
Features of business transaction
Features of business transaction

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