Accounting Knowledge

Transaction: Any dealing that causes increase or decrease in the business is called transaction. It may be related to purchase and sale of goods, receipt and payment of cash and rendering of services by one party to another. If the value of transaction is met in cash immediately, it is called cash transaction . If the value of transaction is not met in cash immediately, it is called credit transaction

Accounting is an art of recording, classifying and summarizing in terms of m oney transactions and events of financial characteristics and interpreting the results thereof. Accounting is also called the language of business .