On the contrary, the events may or may not have an impact on the business finances.

The business transactions may change the financial position of the company, as it has a direct impact on the company’s finances.

In accounting, all the transactions are recorded, as and when they take place, whereas only those events are recorded in the books of accounts which are of financial in nature.

While transactions are the deliberate acts performed by the business entities, events are the results of the transactions.

Conversely, event or otherwise known as the economic event is the happening of the consequence to the business enterprise as a result of a transaction, that can be measured in monetary terms.

By the term transaction, we mean the exchange of asset or discharge of liabilities for adequate consideration, between two persons or accounts.

The difference between transaction and event are described hereunder: Key Differences Between Transaction and Event For example: Purchasing/selling goods from/to another enterprise.

External Event: When the business entity transacts with an external organisation, the outcome would be an external event.

For example: Supplying raw material by stores to the manufactiuring department, payment of wages, etc.

Internal Event: When the business transaction takes place within the realm of the enterprise, the result would be an internal event.

There are two types of business events, given as under: Therefore, it can change the fundamental accounting equation and can be expressed monetarily.

Whenever there is an increase or decrease in the company’s assets or liabilities, an accounting event takes place. In an accounting sense, an event can be understood as the final outcome of a business activity, that can affect the account balances of the company if it is financial in nature. In simple terms, an event may be described as any incidence, that occurs as a result of something. There are two types of accounting transactions, given as under: The occurrence of a business transaction is on a regular basis, which includes purchasing or selling of goods, receipt of money from debtors, payment to creditors, extending or borrowing money, generating income or incurring expenses. When all the business transactions are tracked properly, it helps in analysing the financial soundness of the business. These are recorded in the books of account, with a journal entry. It may result in lt in the movement of value from one person to another. Any event which has some monetary impact on the financial statement of the business is called as a transaction. The term financial transaction is viewed as a business dealing, which involves the exchange of goods or services for value between two or more parties, firms or account. May or may not result in change in financial position of the company.

Results in change in the financial position of the company. Only those events are recorded which are financial in nature. Transactions are those business undertaking, that have a direct or indirect impact on the finances of the company.Īn event alludes to the occurence of consequence to a business organization, due to a transaction that can be expressed in monetary terms. To understand the meaning of accounting completely, one should know the difference between transaction and event, as the entire discipline is based on it. On the other hand, event alludes to the final outcome of the business transaction. What is accounting meaning in Hindi, accounting translation in Hindi, accounting definition, pronunciations and examples of accounting in Hindi.The term transaction can be understood as the business deal of buying and selling something for adequate consideration, carried out between two or more persons or entities. Find the answer of what is the meaning of accounting in Hindi. Learn and practice the pronunciation of accounting. Find accounting similar words, accounting synonyms. See accounting meaning in Hindi, accounting definition, translation and meaning of accounting in Hindi. The word or phrase accounting refers to the occupation of maintaining and auditing records and preparing financial reports for a business, or a system that provides quantitative information about finances, or a convincing explanation that reveals basic causes, or a statement of recent transactions and the resulting balance, or a bookkeeper's chronological list of related debits and credits of a business forms part of a ledger of accounts.

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