3. Business Transaction

3.1 Types of Business Transaction

✓ Cash Transactions: Involve immediate payment or receipt of cash.

✓ Credit Transactions: Involve payment or receipt of cash at a future date.

✓ Barter Transactions: Involve the trading of goods or services for other goods or services (barter).

3.2 Accounting Equation

✓ The fundamental equation representing the relationship between assets, liabilities, and equity. Formula: Assets = Liabilities + Equity Every transaction affects at least two elements of the equation, maintaining its balance.