---
title: "How many types of business transactions are there in accounting?"  
description: "How many types of business transactions are there in accounting?"  
author: "Joseph Rossignol"  
published: 2017-11-27  
canonical: https://answers.mindstick.com/qa/31255/how-many-types-of-business-transactions-are-there-in-accounting  
category: "business & finance"  
tags: ["business finance"]  
reading_time: 1 minute  

---

# How many types of business transactions are there in accounting?

How many types of [business](https://www.mindstick.com/articles/23272/why-software-localization-is-important-for-your-business) [transactions](https://www.mindstick.com/interview/307/explain-acid-rule-of-thumb-for-transactions) are there in [accounting](https://www.mindstick.com/articles/13034/challenges-for-accounting-students)?

## Answers

### Answer by Vishal Kesarwani

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


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Original Source: https://answers.mindstick.com/qa/31255/how-many-types-of-business-transactions-are-there-in-accounting

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