Business transactions refer to any activities or exchanges between parties that involve the transfer of goods, services, or financial assets in a business context. These transactions can occur between businesses, between businesses and consumers, or within an organization itself. They typically involve an agreement or contract which outlines the terms of the exchange, including price, quantity, and delivery expectations.
Business transactions can take various forms, including sales, purchases, leases, loans, and investments. Each transaction is usually recorded in accounting systems to track financial performance, ensure legal compliance, and manage resources efficiently. These records help businesses analyze their operations and inform decision-making.
In essence, business transactions are the fundamental activities that drive the operations and growth of a business, representing the economic interactions that contribute to revenue generation and expense management.