How accounting transactions differ from events

How accounting transactions differ from events

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How accounting transactions differ from events. Transactions are the subject matters of Accounting. Accounting means maintaining of accounts of transactions systematically. For this reason one should have clear conception of transaction before knowing techniques and principles of accounting. Transactions are very important elements in Accounting. Events treated as transactions are recorded in the books of accounting. Events other than transactions are not recorded in the books of accounts. The dictionary meaning of transaction is to give and take. All events are not transactions and all transactions are events. An event may or may not bring change in the financial position of a person, family, or organization and an event must bring a financial change. Financial changes caused by events may or may not be measurable in terms of money. For example, death of a skilled employee may bring heavy loss to a business, but this loss is not
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