A transaction in accounting is any monetary business event that impacts a business's financial statements. It is recorded as an entry in the accounting records and has a monetary effect on the financial statements. Examples of transactions include paying a supplier for services or goods, paying an employee for hours worked, receiving payment from a customer, purchases of fixed assets, investments, business loans, and more
. In the accrual method of accounting, transactions are recorded when they occur, while in the cash method, they are documented only when payments are made or received
. The double-entry method is commonly used when recording accounting transactions, where every entry to an account requires an opposite entry
