FINANCIAL ACCOUNTING SSS1 FIRST TERM        

WEEK 2

TRANSACTION- MEANING AND CLASSIFICATION

Performance Objectives

Students should be able to:

• Meaning of transaction
• Classification of transaction

Contents

Transaction

The transaction involves the transfer of goods, services, money or money’s worth (e.g. assets) to and from a business organization.

The essential feature of transactions in accounting is that such transactions to be recorded should be quantifiable in monetary terms hence it is usually described as financial transactions.

CLASSIFICATIONS OF TRANSACTIONS

Financial transactions which are recorded, summarised, classified and analysed in accounting could be either of two types

1. Cash Transactions: This occurs whenever goods are received by a person or business and payment is made immediately for such goods.... View More