How many types of business transactions are there in accounting?

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Anonymous User asked 27-Nov-2017 in Business & Finance by Anonymous User

How many types of business transactions are there in accounting?

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Anonymous User answered 30-Nov-2017 by Anonymous User
There are basically two types of transaction in accounting which are R Revenue transaction and capital transactions. 

Revenue transaction
The transaction which is of short-term is considered as revenue transactions. These transactions generally are expected to benefit the current period. The revenue transaction is shown in profit and loss account while preparing a balance sheet.

Example s
  • Sales of inventory and costs of inventory acquisition and/or creation
  • Short-term receivables and payables
  • Other monies received from other sources such as rents and dividends

Capital transaction
The transaction which deals with the non-current assets and liabilities are considered as capital transactions.

Examples
  •  Purchase of a land
  • Purchase of machinery
  • Investments